Deposits for trade jobs: how much to ask for, and how
Yes, you can ask for a deposit, and no UK law caps the amount. Keep it in proportion to what you have to pay out before you start, usually the materials, and write the terms on the quote. A deposit you keep no matter what happens is likely to be challenged as unfair.
Can I ask for a deposit?
Yes. It's normal for any job where you're buying materials or holding dates in the diary. A deposit covers your outlay and shows the customer is committed. Most customers expect one on anything bigger than a day's work, and the ones who refuse to pay anything upfront are telling you something useful.
How much deposit should I ask for?
Tie it to what you have to spend before you start. That's easy to explain and hard to argue with.
| Job | Typical approach |
|---|---|
| Small jobs, a day or two | No deposit, payment on completion |
| Jobs with special order or made-to-measure items | The cost of those items upfront |
| Medium jobs, up to a couple of weeks | 10% to 30%, or the materials cost |
| Large projects | A booking deposit, then stage payments |
These are common practice, not rules. A large deposit on a small job puts customers off, and half the money upfront on a long job leaves them carrying all the risk. Consumer bodies regularly tell homeowners to be wary of that, so it can cost you the work.
When should I use stage payments instead?
On anything that runs for more than a couple of weeks. Split the price across points in the job that both of you can see: materials delivered, first fix complete, second fix complete, finished and snagged. You're never owed more than a stage, and the customer never pays far ahead of the work.
Write the stages and the amounts on the quote, for example: "30% on booking, 40% when first fix is complete, 30% on completion."
Can I keep the deposit if the customer cancels?
You can keep what the cancellation has actually cost you. You can't safely keep everything just because your terms say "non-refundable".
Under the Consumer Rights Act 2015, a term that tips the balance unfairly against a consumer isn't binding on them. The Competition and Markets Authority's guidance on unfair terms uses deposits as an example: a customer who cancels shouldn't lose a large prepayment when the trader's real loss is small.
In practice that means materials you've bought and can't return, and work already done, are reasonable to keep. A blanket 50% for a job cancelled three weeks out, when you've spent nothing and filled the slot, is not. Fair wording does the job better than tough wording: "If you cancel, the deposit is refunded less the cost of any materials already ordered and work already done."
Does the customer have a cooling-off period?
Often, yes. If the contract is agreed at the customer's home, or entirely by phone or online, the Consumer Contracts Regulations 2013 usually give them 14 days to cancel. You're expected to tell them about that right in writing. If you don't, the cancellation period can be extended by up to a year.
Two things follow from that:
- Starting within the 14 days. If the customer wants you to start sooner, get that request from them in writing. If they then cancel inside the 14 days, they pay for the work done up to that point.
- Exceptions. There are some, including urgent repairs the customer has called you out for, and goods made to the customer's specification. They're narrow, so read them before relying on one.
GOV.UK has a plain summary of when you have to give refunds.
How should I word a deposit on a quote?
Say how much, when it's due, when the balance is due, and what happens if the job is cancelled. For example:
A deposit of £600 is due on acceptance to cover materials. The balance of £1,840 is due on completion. If you cancel, the deposit is refunded less the cost of any materials already ordered and any work already done.
When you take a deposit, give a receipt, and record it on your invoice when the job is done.
How does QuoteMate handle deposits?
QuoteMate has a payment terms box on every quote. Write your deposit and payment terms there in your own words and they appear in the quote email and on the PDF. There's no separate deposit field, and QuoteMate doesn't work the deposit out for you.
QuoteMate doesn't take payments either. The customer accepts the quote with one tap, and you collect the deposit the way you normally would. More on what goes on a QuoteMate quote, or read how to write a quote.
This guide is general information for UK tradespeople, not legal or tax advice. Rules and thresholds change, so check the linked official pages, or ask an accountant or solicitor about your own situation.