Deposits before starting work: how much should a tradesperson ask for?

Asking for money up front protects you against a customer who cancels after you've bought materials. Asking for too much puts good customers off, and some have been burned before. Here's how to set a fair deposit and explain it clearly.

Updated 9 October 2026 · DeskKit Tools, Belfast

Why ask for a deposit at all?

• Materials: you may need to buy or order items before you start, some of them made to measure or non-returnable.
• Commitment: a deposit turns a "yes" into a booking. Customers who pay are less likely to cancel or go with someone cheaper at the last minute.
• Cash flow: a sole trader can't easily fund thousands of pounds of materials for weeks before getting paid.

How much is reasonable?

There is no fixed legal amount in the UK. What matters is that it is fair and clearly agreed. A sensible approach:

• Small jobs (a day or two of labour, few materials): often no deposit, payment on completion.
• Jobs with significant materials: a deposit that roughly covers the materials you need to buy before starting, especially special-order items.
• Bigger or longer jobs: a modest deposit, then stage payments linked to clear milestones, with the final payment on completion.

Many customers are wary of large upfront payments, because that is exactly how rogue traders operate. Linking the deposit to materials, and showing what it pays for, builds trust.

What consumer law expects

Under the Consumer Rights Act 2015, contract terms with consumers must be fair. Government guidance on writing a fair contract for customers says that if a customer cancels, any deposit or prepayment you keep must take into account what your business actually loses, must not be excessive, and should reflect steps you can take to reduce your loss. A term letting you keep a deposit when the customer has had no benefit and you've lost nothing is unlikely to be fair.

Remember the 14-day cancellation right too. If the job was agreed at the customer's home or at a distance, they can usually cancel within 14 days. If they do, you must refund payments, less the value of any work they asked you to start in that period. Business Companion explains the details.

Stage payments that work

Stage payments keep both sides comfortable on bigger jobs. Tie each payment to something the customer can see:

Avoid payments based only on dates ("£2,000 on the 15th") where the work may not have reached that point. Customers are more willing to pay for visible progress.

Put it in the quote

Your quote should state the deposit amount, what it covers, when it's due, how to pay, and what happens if the job is cancelled. See our guide on how to write a quote for a job for a full layout.

Deposit request wording

Recording deposits properly

• Record the deposit against the quote as soon as it arrives, with the date and how it was paid.
• Send a short receipt.
• Show the deposit clearly on the final invoice as already paid, so the balance is right.
• For your accounts, keep a list of deposits received for jobs not yet finished. Your accountant will want it.

Card or bank transfer?

Bank transfer is cheapest, but always confirm your bank details in person or by phone with new customers. Invoice fraud, where criminals send fake "updated bank details", is common. Never change your bank details by email without a call. Card payments by payment link cost a small fee but are quicker for the customer.

Business customers

For work for other businesses, the late payment rules let you charge statutory interest of 8% plus the Bank of England base rate on late invoices, unless your contract sets a different rate. That doesn't replace a deposit, but it is worth stating your payment terms clearly.

General information for small businesses, not legal or professional advice. Rules change, so check the official sources linked above before you rely on them.