How much deposit should a tradesperson ask for?

Luke Nixon · 12 June 2026 · 10 min read

Tradesperson and homeowner agreeing a deposit and payment schedule for a job

For most jobs, a deposit of 10% to 25% of the total price is normal and fair. The Federation of Master Builders advises that 10% is reasonable, and that customers should be wary of paying more than 25% – and walk away from anyone asking for 50% or more upfront [1]. A deposit's real job is to cover the costs you pay out before you start, mainly materials, so you're not funding someone else's job out of your own pocket. It shouldn't be the whole price, and it shouldn't be your profit taken early.

That's the short answer. The rest of this guide covers when a deposit is worth taking at all, how much to ask for, how big jobs are split into stages, how to handle extra work that crops up, and how to take a deposit the right way so it holds up if a customer ever pushes back.

Does every job need a deposit?

No. Plenty of work doesn't need one.

A quick callout, a half-day repair, a small job where you're not buying much in the way of materials – you can usually just invoice on completion. Asking for a deposit on a £120 job can make you look like you're worried about getting paid, and it's more hassle than it's worth. The FMB is clear that customers should never pay the whole cost of a job upfront, and that a deposit is really there to cover materials a tradesperson needs to order in [1][2].

A deposit earns its place when one of these is true:

You have to buy materials before you can start, so your own money is tied up in someone else's job.
It's a smaller booked job that holds a slot in your diary, and you'd lose work if they cancelled on you last minute. Here a modest deposit secures the booking, even if there's little to buy in advance.

If neither applies, you probably don't need one. If one does, a deposit is normal, fair, and expected.

How much deposit should you ask for?

There's no fixed legal figure, but the trade and the main consumer bodies settle around a clear range:

10% to 25% is the normal band. The FMB advises 10% is reasonable and not to go above 25% [1]. Citizens Advice tells homeowners the same – don't agree to more than 25% [3].
25% is roughly the ceiling for a standard domestic job. It's also the level that can be protected: the Consumer Protection Association's deposit protection scheme insures a deposit of up to 25% of the price, or £7,500, whichever is lower [4]. So £7,500 is a sensible practical cap on a larger job, because beyond that the deposit can't easily be protected.
50% or more on a standard job is a red flag to customers. The CPA flags that asking for 50% or the full amount before work begins is outside standard practice and should raise questions [5]. It's the figure that gets tradespeople a bad name, so avoid it unless there's a genuine reason.

The main exception is bespoke or made-to-order materials – made-to-measure windows, a specific worktop, anything you can't return. The FMB notes it's normal to ask for a deposit on made-to-order elements [1]. There, the deposit can reasonably cover that specific item, even if it pushes the percentage up – as long as you can point to exactly what the money is for.

What should a deposit actually cover?

This is the bit that keeps you out of trouble: a deposit should be tied to a real cost, not a round number plucked from the air.

At a minimum, it should cover the materials you need to buy before day one, so you're never funding a customer's job before they've committed anything [6]. If you're asked what the deposit is for, you should be able to say plainly: "It covers the materials I order in for your job." It's worth knowing that Citizens Advice actually tells customers they can offer to buy the materials themselves instead of paying a deposit [3] – so being open about what your deposit buys, and giving receipts for it, is what sets an honest quote apart.

Tied to what you actually spend before starting, a deposit is an easy yes for a customer. It's when the figure climbs past that – closer to full payment, or profit up front – that people start to hesitate, and fairly so.

How do big jobs work? Deposits and staged payments

On a large job – an extension, a full refit, anything running over several weeks – you don't take one big deposit. You take a smaller deposit to get going, then staged payments tied to completed work as the job progresses.

This is the important bit, and it's where a lot of confusion creeps in: staged payments are released as each stage is finished, not handed over before each stage starts. You get paid for work that's actually been done. That's how the standard JCT and RIBA domestic building contracts are built [7], and it's what Citizens Advice supports – protecting each staged payment until that part of the work is complete [3]. Asking a customer to pay ahead of completed work is exactly what they're warned against, so it tends to read as a warning sign rather than normal practice.

A typical large job might look like:

A smaller deposit to cover the first materials and secure the start date.
A payment once a clear stage is finished (for example, once the footings are in, or first fix is done).
A further payment as the next stage is completed.
The final balance on completion, once the customer is happy. Some clients also hold a small retention – often around 5% – for a short period after completion to cover any snagging.

The reason this works for both sides: each payment is tied to work the customer can see. You're never carrying weeks of cost with nothing coming in, and you're not finishing the whole job only to chase the full amount at the end.

Get it in writing so nothing's a surprise later

What keeps a job running cleanly from start to finish is having it written down and agreed before you begin – the scope, the price, and how payments are split. Two parts are worth getting right:

Agree the schedule before you start, in writing. Citizens Advice advises homeowners and tradespeople to agree a schedule of works and payments in writing that both sides are happy with [3]. Asking for money mid-job, out of the blue, worries customers – it can look like you've run short. When the schedule is agreed upfront, each payment is just the plan being followed. Make the milestones obvious ("payment due when first fix is complete") so there's nothing to argue about later.

Put extra work in writing too. Surprises are normal on a job – you open a wall up and find something that wasn't in the original price. That's fine, and customers understand it. What causes disputes is doing the extra work first and presenting the bill afterwards. Solicitor and consumer-law guidance is consistent here: any price variation for extra or amended work should be agreed in writing before the work is done [8]. A quick note setting out the extra cost, with the customer agreeing before you crack on, keeps everyone on the same page and means no confusion at the end.

This is where a written agreement does the heavy lifting – and it doesn't need to be a stack of paperwork. A digital job agreement that both sides sign off, with the schedule and each payment set out, gives you a clear record without the faff, and the same goes for logging any extra work both sides have approved. Digital agreements are on solid legal footing in the UK, too: electronic signatures are recognised under the Electronic Communications Act 2000 and were confirmed valid for most agreements by the Law Commission's 2019 report, as long as there's a clear record of both sides agreeing [10]. That's exactly what Renofy is built for – a plain-English agreement you set up in minutes, with any variations recorded and approved against the job, so nothing comes down to "he said, she said" at the end.

How to take a deposit the right way

Getting the amount right is half of it. How you take it matters just as much.

Put it in writing. Your quote should state the deposit amount, what it covers, and that the balance is invoiced on completion or at agreed stages. A line as simple as "A deposit of £X is required to secure your booking and cover initial materials. The balance is due on completion." does the job. The FMB advises recording any deposit payment in writing [2].

Keep it fair and proportionate. Under the Consumer Rights Act 2015, deposit terms have to be fair and transparent, and a deposit you want to keep if a customer pulls out has to reflect a genuine cost to you – materials ordered, time set aside – not a penalty. An excessive or vague "non-refundable" deposit can be unenforceable [9], so tie it to real costs and say what those are.

Give a receipt and use a traceable payment. Citizens Advice recommends always getting a receipt for a deposit, and for any materials it covers [3]. Bank transfer or card over cash, every time – it protects you as much as the customer.

Make it easy to pay, card included. Customers are often more comfortable paying by card. Part of that is reassurance: credit card payments over £100 carry Section 75 protection under the Consumer Credit Act, which makes the card provider jointly liable if something goes wrong [11], and card payments leave a clean trail either way. Offering card alongside bank transfer makes a deposit feel less of a leap of faith. Renofy lets customers pay deposits and stage payments by card through Stripe, so the money's recorded against the job and the customer gets to pay the way they're used to.

Frame it with confidence. Every serious industry takes deposits – hotels, venues, car dealers. Said plainly and backed by a clear quote, most customers see it as a sign you run things properly, not a warning sign.

A note on pricing – because it's the real issue

Most tradespeople are brilliant at the actual work. Pricing and the business side don't always come as naturally, and that's where deposit problems usually start – not dishonesty.

The pattern that leaves customers in the lurch is nearly always the same: a job gets underpriced to win it, the money runs out partway through, and suddenly there's nothing left to buy materials with. Underpricing is one of the most common cash-flow mistakes in the trade. A deposit can't fix a quote that was wrong to begin with – it can only do its job if it's sized to what the work actually costs you upfront, which means knowing your numbers before you set it.

That's a bigger topic than this guide. But the short version: get the quote right first, then let the deposit and staged payments cover your costs along the way. The two together keep you in pocket and the customer confident.

Renofy gives tradespeople a simple way to set out a job, agree it with the customer, and tie each payment to a photo-backed milestone – so deposits, staged payments and any extra work are clear, recorded, and protected for both sides.

References

Federation of Master Builders – How to choose a builder (deposit 10% reasonable, no more than 25%, walk away at 50%, made-to-order elements). https://www.fmb.org.uk/find-a-builder/ultimate-guides-to-home-renovation/how-to-choose-a-builder.html
Federation of Master Builders – Working with your builder (never pay whole cost upfront; record deposit payments in writing). https://www.fmb.org.uk/find-a-builder/ultimate-guides-to-home-renovation/working-with-your-builder.html
Citizens Advice – consumer guidance on getting home improvements done (don't agree to more than 25%; offer to buy materials yourself; get receipts; agree a schedule of works and payments in writing; protect staged payments until work is complete). https://www.citizensadvice.org.uk/consumer/
Consumer Protection Association – Deposit protection scheme (insures a deposit of up to 25% of the agreed price or £7,500, whichever is lower, for up to 90 days). https://www.thecpa.co.uk/trade/trade-deposit-protection/
Consumer Protection Association – How to protect your deposit when hiring a tradesperson (50% or full amount upfront is outside standard practice). https://www.thecpa.co.uk/news/protecting-your-deposit/
Trade business cash-flow guidance – a deposit should at minimum cover materials bought before starting, so you're not funding a customer's job out of your own pocket. https://proplaybooks.co.uk/blog/trade-business-cash-flow-management
Standard JCT / RIBA domestic building contracts and architect guidance – stage payments are made against work that has been completed (valuations), not in advance. https://2pm-architects.co.uk/posts/safely-make-payments-for-building-work/
Solicitor / consumer-law guidance – any price variation for extra or amended work should be agreed in writing before the work is carried out. https://www.araglaw.co.uk/blog/when-home-improvements-go-wrong/ ; https://hegarty.co.uk/news/contractor-exceeds-original-quote-what-are-your-rights
Consumer Rights Act 2015 – deposit terms must be fair and transparent; a non-refundable deposit must reflect a genuine pre-estimate of loss, not a penalty. https://www.gov.uk/government/publications/cancelling-goods-or-services-guide-for-consumers/cancelling-goods-or-services
Electronic Communications Act 2000 and Law Commission 2019 report on the electronic execution of documents – electronic signatures are recognised and valid for most agreements in the UK where there is clear intention to authenticate; retained UK eIDAS Regulation also applies. https://www.gov.uk/government/publications/electronic-execution-of-documents
Section 75, Consumer Credit Act 1974 – for credit card payments between £100 and £30,000, the card provider is jointly liable with the trader, giving the customer added protection. https://www.gov.uk/government/publications/consumer-credit-act

Frequently asked questions

Is it normal for a tradesperson to ask for a deposit?

Yes, on jobs where you're buying materials in advance or booking time. It's standard practice. For very small jobs, it's often not needed.

What's the maximum deposit I should take?

For a standard domestic job, keep it at or below 25% – the figure the FMB and Citizens Advice both point to – or £7,500, whichever is lower, since that's the level a deposit protection scheme will insure. Asking for 50% or more is the figure that worries customers most.

On a big job, should I take a big deposit or staged payments?

Staged payments. Take a smaller deposit to cover the first materials, then payments released as each stage is completed, with the balance on completion. Paying ahead of completed work isn't standard and tends to put customers off.

Can I take a non-refundable deposit?

It depends on consumer law, not just the contract. Citizens Advice and the CMA say a "non-refundable" label only holds if it's fair and proportionate – you can usually keep only a genuine loss you can't recover, like bespoke materials a supplier won't take back. For your own terms, check the CMA's guidance on unfair contract terms.

What if extra work comes up mid-job?

That's normal. Agree the extra cost in writing and get the customer to confirm in writing before you do the work – never present it as a surprise on the final bill.

How should I take the payment?

Bank transfer rather than cash, with the amount and what it covers written into your quote, and a receipt confirmed. It protects both sides and keeps a clear record.