Doing work for family and friends is where many tradies lose money and goodwill at the same time. The way to protect both your wallet and the relationship is to quote the job properly first, then decide on a discount openly, and never drop below your break-even price. A clear, written quote with a visible discount means your mate values the work and you do not end up paying to do the job.
Pricing for family and friends without losing your shirt
The pressure to do cheap or free work for people you care about is real, and so is the resentment when the job turns into a bigger problem than you quoted for. A few principles keep it clean:
- Quote properly first. Give family and friends the same detailed quote you would give any client. Then decide on a discount. Never skip the quote.
- Be explicit about the discount. "My normal price would be R8,000; for you I am doing R6,000." This preserves the relationship and means they value what they receive.
- Be clear on scope. Mates rates apply to the quoted scope, not to the extras that always seem to appear once you are on site.
- Know your floor price. Work out your break-even on every job: materials plus labour at your minimum hourly rate. Never go below this, even for family, otherwise you are literally paying to do the job.
The tax angle on free or below-market work
If you do work for free, SARS does not treat this as income, so there is nothing to tax. However, if you supply goods, such as materials, as part of the free work, take care: SARS may look at whether supplying those materials creates a tax implication, including a VAT issue if you are VAT-registered. For most self-employed tradies who are not registered for VAT, this is not a concern.
VAT registration only becomes compulsory once your taxable turnover passes R2.3 million in a 12-month period, a threshold that applies from 1 April 2026, so most sole traders never reach it. If you are VAT-registered and you do a job for a friend at below market value, SARS may assess VAT on the open market value of the supply under Section 10(4) of the VAT Act, rather than on the cheaper price you actually charged. This is a technical area. Verify your specific situation with a registered tax practitioner or check the current rules on the SARS website before relying on it.
Protecting the relationship
The relationships you most want to keep are exactly the ones a bad job can damage. Treat a mate's job with the same discipline as a paying client:
- Take photos before, during and after, just as you would with any client.
- Do not allow scope creep without renegotiating. "While you are here" is still extra work, even for family.
- Invoice even at R0. A zero-value invoice documents what was done and when, which protects you if a question comes up later.
Common mistakes
- Skipping the quote because it is "just family", then arguing about the price when the job grows.
- Hiding the discount so the favour goes unnoticed and unappreciated.
- Working below break-even, which means you lose money on every hour.
- Letting the job balloon with unquoted extras nobody agreed to pay for.
- Assuming VAT never applies. If you are VAT-registered, below-market work for a friend can raise an open-market-value question under the VAT Act. Check it with a tax practitioner.
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