How much deposit should a tradesman ask for? And how to ask.
The short answer: Homeowners are told not to agree to more than 25% on a long job, to be wary of anyone who wants it all up front, and to prefer paying in stages. So ask for a deposit that covers materials and your lost time if they pull out, usually 10% to 25%, break bigger jobs into stage payments tied to milestones, and put it on the quote before they say yes, not in a message the week before you start.
It’s the week before the kitchen job. You’ve ordered the units. The worktop’s bespoke, cut to their measurements, no returns. That’s a few grand of your money sat on your account with their name on it.
And you haven’t asked for a penny yet, because it felt awkward on the day.
So now you’re typing a message that starts “Hi, sorry to ask, but…” to a customer who’s already told their mates you’re doing the job. That’s the wrong week to have the conversation.
The right week was the one where you sent the quote. Here’s how to get it right, what the customer’s been told to expect, and the exact words to use.
What homeowners are told about deposits
Before you decide what to ask for, know what the person reading your quote has already read.
Citizens Advice tells homeowners that paying a deposit “is not always reasonable”, to avoid paying the full amount upfront, and to be wary of traders who insist on it. If a deposit can’t be avoided on a long job, its advice is plain: “don’t agree to more than 25%.” It also suggests that where materials are needed, the customer could offer to buy them themselves instead of paying a deposit, and that they should always get a receipt for the deposit and for any materials it covers.
The same page tells them to pay in stages so problems can be fixed before the final payment, to agree which points in the work trigger each payment, and to pay by card where they can for the protection it gives.
HomeOwners Alliance, the other body customers read, pushes them towards a written building contract before work starts and mentions a 5% retention, “where a small portion of the project value is retained until the very end of a project” to cover snagging.
So the customer who hesitates when you say “50% up front” isn’t being difficult. They’ve been told to.
Is it normal for a tradesman to ask for a deposit?
Yes, and it’s fair, as long as it’s proportionate and explained.
A deposit does two jobs. It covers money you’re spending before you’ve earned anything, and it proves the customer is serious before you turn down other work for them. Where it’s clearly fair:
- Materials-heavy jobs — a boiler, a kitchen, a bathroom suite, a roof’s worth of tiles. You’re buying the kit before you fit it.
- Bespoke or made-to-measure orders — worktops, windows, doors, built-in joinery. If they cancel, you can’t send it back.
- Long jobs — anything over a week or two, where you’ve blocked out the diary and the customer’s cancellation would leave a hole in it.
- New customers you don’t know — nothing personal. A small deposit is the normal way of both sides showing they mean it.
Where it’s harder to justify: a half-day job with £40 of materials. Ask for one there and you look like you’ve been burned, or like you’re the trader Citizens Advice warned them about. Quote it, do it, invoice it.
How much deposit should a builder ask for?
There’s no law setting a percentage. There’s a guidance ceiling customers know about (25%), and there’s what the job actually needs. Work it out from the job, not from habit.
A simple way to land on a number:
- Add up what you’ll spend before day one — materials, hire, anything bespoke. That’s the floor. You shouldn’t be the bank.
- Add a figure for your diary risk — what it costs you if they cancel after you’ve turned down other work. On a two-week job, a few days’ labour is reasonable.
- Check it against 25% — if your number is above that, split it. Materials deposit now, first stage payment on day one.
- Round it to something that reads as fair — £500 on a £4,000 bathroom reads better than £487.50.
A worked example. Bathroom refit, £6,000 all in. Suite, tiles and brassware are £2,100 and you’re ordering them a fortnight early. A 25% deposit is £1,500, which doesn’t cover the kit. The honest version is: “Materials deposit of £2,100 on acceptance, which covers the suite and tiles I’m ordering for you. Balance in two stages: £2,000 on first fix, £1,900 on completion.” It’s over 25% as a single figure, but it’s itemised, it’s obviously the kit, and the customer can see exactly where their money’s going. That’s what makes it reasonable.
Suite, tiles and brassware are £2,100 and ordered a fortnight early. A flat 25% deposit (£1,500) wouldn’t cover them.
Two things to avoid. Don’t ask for 50% as a round number with no explanation. And don’t ask for 100% up front, ever. Customers have been told to walk away from that, and they do.
Stage payments on bigger jobs
Past a week or two, a single deposit and a single final bill is bad for both of you. You’re funding the job for a month. They’re being asked for a big number at the end with no chance to raise a snag.
Tie stage payments to things you can both see:
- On acceptance — materials deposit.
- Day one / first fix — a stage payment when you’re on site and the strip-out or first fix is done.
- Second fix / plastered / tiled — a stage payment at each point where the job visibly moves on.
- Completion — the balance. If the customer wants a small retention until snagging’s done, agree the figure (HomeOwners Alliance mentions 5%) and the date it’s released.
Put the stages on the quote as a table. Numbers, triggers, dates where you’ve got them. When the quote’s accepted, the payment plan is accepted with it. No awkward messages later.
Put it on the quote, not in a text
The mistake in the opening story wasn’t asking for a deposit. It was asking for it after the price had been agreed.
Citizens Advice tells homeowners that once they say yes to a quote, “it’s a binding agreement between you and the trader, whether it’s written down or not.” That works in your favour. If the deposit and the stage payments are on the quote they accepted, they’re part of the deal. If they aren’t, you’re renegotiating.
So the quote carries:
- The deposit — amount, what it covers, when it’s due (usually on acceptance).
- Stage payments — amount and trigger for each.
- How to pay — bank transfer details or a pay link. Say which.
- A receipt line — “A receipt is issued for every payment.” The customer’s been told to ask for one. Beat them to it.
- Your cancellation terms — for work agreed in a customer’s home, they have 14 days to cancel, and if they cancel before any work has started they can get their money back in full. Say what happens to the deposit if they cancel after you’ve ordered bespoke materials, and get their written go-ahead if you’re starting inside the 14 days. The rules are in our guide to whether quotes are legally binding.
Deposit protection: what they may ask you
On bigger jobs, expect the question: “What happens to my deposit if you go bust?”
Citizens Advice tells homeowners to check whether the trader has insurance that would return the deposit if they went out of business, or whether they use an escrow scheme registered with the Financial Conduct Authority, where the money sits in a neutral account and is released at agreed points.
You don’t have to offer either on a £500 deposit. If you take larger deposits on long jobs, it’s worth knowing what deposit-protection insurance would cost you, because it’s a reason for a nervous customer to pick you over the next quote. If you’re a member of a trade body that provides it, say so on the quote.
If you’re VAT-registered: the deposit is a tax point
One for the VAT-registered. A deposit isn’t just money in. HMRC’s VAT guide (Notice 700, paragraph 14.2.2) says that if you receive a payment before the basic tax point, the tax point for that amount is “the date you issue the invoice or receive the payment, whichever happens first.” So VAT on the deposit is due in the VAT period you receive it, not when you finish the job. Issue a VAT receipt for it and your books stay straight. Checked against GOV.UK on 21 October 2026.
How to ask: the words
Most deposit arguments come from how it’s asked, not what’s asked. Say it once, plainly, with the reason attached.
On the quote itself:
Payment: materials deposit £2,100 on acceptance (covers suite, tiles and brassware, ordered on your behalf). £2,000 on first fix. £1,900 on completion. Receipt issued for every payment. Pay by bank transfer or the link on each invoice.
In the chat, when they say yes:
“Brilliant, thanks Sarah. I’ll get the suite and tiles ordered this week so they’re here for the 10th. The materials deposit’s £2,100 as on the quote, I’ll send the invoice over now with a pay link. Once that’s in, you’re booked.”
If they push back:
“Totally fair to ask. It’s the cost of the kit I’m ordering for you, nothing more, and you’ll get a receipt. The labour you pay as we go, so you’re never ahead of the work.”
No apology, no “sorry to ask”. It’s the normal way a job runs, so say it like it is.
So we put the deposit on the quote for you
With The Back Office, the deposit goes in the voice note. You’re still in the kitchen and you say to Jan on WhatsApp (or Telegram, if that’s your one): “Quote for Sarah Khan, 9 Beech Avenue. Bathroom refit, supply and fit, six thousand. Materials deposit two thousand one hundred on acceptance.” In under a minute a branded PDF quote comes back with the work itemised, VAT handled if you’re registered, the deposit on it, your terms, and a line for Sarah to accept. She says yes in the chat, and the deposit’s agreed before you’ve ordered a thing.
Straight with you: Jan drafts, you approve. Nothing reaches a customer until you’ve said so, because it’s your name on it. We keep your quotes, invoices and receipts as tidy digital records so your books are MTD-ready for you or your accountant. We don’t file your return and we’re not HMRC-approved software. £29 a month inc. VAT, flat. In pounds.
Deposits for tradespeople: quick FAQ
Is it normal for a tradesman to ask for a deposit?
Yes, on jobs where you’re buying materials up front, ordering bespoke items, or blocking out more than a few days. On a half-day job with little material, most trades don’t bother.
How much deposit should a builder ask for?
Enough to cover materials you’re buying before day one plus a fair amount for the diary risk, usually 10% to 25%. Customers are told by Citizens Advice not to agree to more than 25% on a long job, so if you need more, itemise it as a materials deposit and stage payments.
Is it normal for a builder to ask for a 50% deposit?
It happens, but customers have been told to be wary of it. If half the job’s value is bespoke materials you’re ordering for them, say that on the quote and it reads as fair. A round 50% with no reason attached loses jobs.
What is the maximum deposit a builder can ask for?
There’s no legal maximum. The guidance customers read says no more than 25% on a long job, and never the full amount up front.
Should I take stage payments?
On anything over a week or two, yes. Tie each payment to something visible: first fix, plastered, completion. It keeps your cash flow level and gives the customer a chance to raise snags before the final bill.
Can a customer get their deposit back?
If the job was agreed in their home or over the phone, they have 14 days to cancel. If no work has started, they can get the full deposit back. Say in your terms what happens to a deposit after bespoke materials are ordered, and get their written go-ahead before starting inside the 14 days.
Do I have to give a receipt for a deposit?
Customers are told to ask for one, so yes. If you’re VAT-registered, a deposit creates a tax point and you need to issue a VAT receipt for it.
The deposit conversation is only awkward if you have it after the price. Put it on the quote and it’s not a conversation at all.
Where these figures come from
Every figure in this guide is linked to its source below, with the date we checked it. Guidance changes and every job is different. If you’re reading this a long way from the date at the top, check the originals.
- Deposits not always reasonable; don’t agree to more than 25% on a long job; avoid paying in full upfront; offer to buy materials instead of paying a deposit; always get a receipt; pay in stages tied to agreed points; pay by card for protection; check for deposit insurance or an FCA-registered escrow scheme; a quote is a binding agreement once accepted — Citizens Advice, Before you get building work done: citizensadvice.org.uk/consumer/getting-home-improvements-done/before-you-get-building-work-done/
- 14-day cooling-off period for work agreed at home; full refund if work hasn’t started; cooling-off starts the day after the go-ahead — Citizens Advice, Cancelling building or decorating work: citizensadvice.org.uk/consumer/getting-home-improvements-done/cancelling-building-or-decorating-work/
- Written building contract before work starts; 5% retention until the end of the project — HomeOwners Alliance, Builders’ quotes guide: hoa.org.uk/advice/guides-for-homeowners/for-owners/builders-quotes/
- Payment terms belong in the quote’s terms and conditions, saying whether payment is upfront or on completion — Checkatrade, How to write a great building quote: checkatrade.com/blog/trade/start-business/how-to-write-a-great-building-quote/
- Payment received before the basic tax point creates the tax point for that amount — GOV.UK, VAT guide (VAT Notice 700), paragraph 14.2.2: gov.uk/guidance/vat-guide-notice-700
All sources checked 21 October 2026.