Why ask for a deposit
- It covers materials and special orders you would otherwise fund yourself
- It reserves the customer's slot in your diary, and filters out time-wasters
- It shows both sides are serious about the job
How much is reasonable
There is no fixed figure. A deposit should be proportionate and linked to real costs such as materials or a booking, and not be a way to take most of the money before any work is done. Consider staged payments for larger jobs, with each payment tied to a stage you can both see.
Put it in writing
State the deposit in your quote: how much, what it covers, when it is due, and whether it is refundable if the customer cancels or you cannot do the job. Give a written receipt for any money you take.
Cancellation rights for work at the customer's home
Consumer rules on contracts made away from your business premises, which often includes quotes agreed at a customer's home, can give customers a right to cancel within a set period, commonly 14 days, and require you to give them certain information. There are special rules if the customer asks you to start work during that period and for genuine emergency repairs. This is an area where mistakes are costly, so check the current guidance from Citizens Advice, Trading Standards or GOV.UK, and consider a written terms template.
A stage payment example
Suppose a bathroom refit costs £4,000. Rather than asking for a large sum upfront, you might agree a staged plan. This is only an illustration, and the right plan depends on the job.
| Stage | When | Amount | What it covers |
|---|---|---|---|
| Deposit | On booking | £500 | Ordering the bathroom suite and tiles |
| Stage 2 | When materials arrive and work starts | £1,500 | Strip-out and first fix |
| Stage 3 | When the second fix is complete | £1,500 | Plumbing and tiling finished |
| Balance | On completion and sign-off | £500 | Snagging and final checks |
How to reassure customers about paying upfront
- Explain what the deposit pays for, for example the specific materials
- Offer to show receipts for materials you order
- Give them your terms in writing, and a receipt for every payment
- Show your insurance, accreditations and reviews
- Offer stage payments for larger jobs
When a customer asks for a refund
Stay calm and check your written terms. If you cannot do the job or have not ordered materials, refund promptly. If materials have been ordered or work has started, explain the costs you have incurred, and look for a fair solution. If you cannot agree, Citizens Advice and Trading Standards can advise, and some trades have schemes that can help.
A checklist for fair terms
- Is the deposit linked to real costs or a real booking?
- Is it clear what happens if the customer cancels, and if you cancel?
- Are the payments, stages and amounts written down?
- Does the customer receive a receipt?
- Have I checked the current consumer cancellation rules for work at customers' homes?
Good habits
- Never take a large sum upfront and disappear. It is the pattern that gives the trade a bad name
- Do not take a deposit you cannot justify by costs or a real booking
- Keep deposit money traceable: bank transfer or card, with a receipt
- If you cancel, refund promptly and explain why
- Consider a trade scheme or deposit protection if your trade offers one
Wording you can use
A deposit of £[amount] is required to order materials and reserve your start date. It is [refundable / non-refundable] if the job is cancelled [conditions]. The balance is due [when]. Check this wording against current guidance, and adapt it to your own terms.
Common questions
Can I ask for 50% upfront?
It depends on the job and the costs. It is hard to justify a large share before any work or materials. Link what you ask for to real costs and stages.
What if the customer changes their mind?
That depends on your written terms and the cancellation rules that apply. Check the current guidance and make sure your terms are fair and clear.
Do I have to give a receipt?
It is good practice and helps both sides. Always give one for money taken.
Is this legal advice?
No. It is a general overview. For your own terms and the current rules, check Citizens Advice, Trading Standards, GOV.UK or take professional advice.
Should I take a deposit for small jobs?
Usually not. Small jobs are normally paid on completion.
Can I keep the deposit if the customer cancels?
Only if your terms are fair, written and clear, and consistent with the rules that apply. Cancellation rules can give customers rights to cancel in some situations, so check the current guidance.
What if I cannot start on the agreed date?
Tell the customer as soon as you know, agree a new date or refund the deposit if they prefer.
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