Can a Tradesman Ask for a Deposit? What's Reasonable in the UK

Is it legal to ask for a deposit?

Completely legal. As a self-employed tradesperson you can set your own payment terms, including asking for money upfront. There's no specific legislation governing tradesman deposits — the arrangement is governed by ordinary contract law and the Consumer Rights Act 2015 (for work done for private individuals).

Where it gets complicated is if the job doesn't go ahead. If a customer pays a deposit and you cancel without doing any work, they can usually claim a full refund. If they cancel after you've bought materials or turned down other work, you can keep the portion that covers your genuine losses — but only if that was clearly stated upfront.

The golden rule: put it in writing before any money changes hands. An email confirmation or a signed quote with payment terms is enough. “We agreed it verbally” is hard to enforce.

What's a reasonable deposit amount?

There's no hard rule, but the following ranges are widely accepted in the UK trades:

Avoid asking for more than 33% upfront on a first job with a new customer — anything higher makes customers nervous, and rightly so given stories of rogue traders. On bigger projects, staged payments work better: deposit on booking, another payment at the halfway mark, final balance on completion.

Materials deposit vs general deposit

The cleanest approach is a materials deposit— an amount that specifically covers what you need to buy to start the job. This is easier to justify to a customer (“I need £600 to order the boiler” is a lot more convincing than “I need 25% upfront”) and far easier to defend legally if a dispute arises.

If you're asking for a general booking deposit — to secure your time in the diary — be upfront that it's non-refundable if the customer cancels with less than X days notice. That needs to be stated clearly in your quote or confirmation, not buried in small print.

Combining both is common on larger jobs: a materials deposit when the job is booked, then a stage payment when first fix is done.

When deposits go wrong (and your legal position)

The most common disputes involve:

• Customer cancels after you've bought materials: You can keep the cost of materials you can't return, plus any reasonable time spent. You may need to prove the costs.
• You cancel or abandon the job: Customer can claim the deposit back, plus any additional costs they incur finding someone else.
• Work is disputed: Deposit is usually part of a broader payment dispute. Courts treat it as part of the contract value.
• Customer claims they never agreed to pay a deposit: This is why written confirmation matters. A WhatsApp message counts as written evidence.

Under the Consumer Rights Act 2015, any terms that are “unfair” can be struck down — but asking for a reasonable deposit with clear terms isn't unfair. Courts consistently uphold deposit clauses that are proportionate and clearly communicated.

How to word it in a quote

Keep it simple and factual. Here's an example you can adapt:

Send this in an email or include it on your quote document. Ask the customer to reply confirming they've read and agreed. That's your written record.

What to do if the customer refuses a deposit

It's their right to negotiate. If they're uncomfortable with a deposit, consider:

• Explaining exactly what it covers (materials, booking fee) — most people are more comfortable when they understand why
• Offering a smaller deposit (e.g. 10% instead of 25%) if the full amount feels like a barrier
• Offering to invoice separately for materials so they can see the actual cost
• Politely walking away — if a customer is unwilling to pay any deposit for a large job, that's a warning sign

You have the right to decline work if payment terms can't be agreed. For jobs over £1,000, walking away from a customer who refuses all upfront payment is often the right call.