Make the deposit easy to explain
Trade deposit calculator
A deposit can help fund committed materials and secure a booking. The amount, timing and refund terms must be proportionate, clearly written and appropriate to the contract.
Calculated result
Use this as a commercial check
Formula
Percentage deposit = quote total × deposit rate. Deposit to review = higher of percentage deposit or upfront materials, capped at the quote total.
Worked example
On an £8,000 quote, 25% is £2,000. If committed materials are £2,400, the calculator flags £2,400 for review and leaves a £5,600 balance.
Reviewed for UK trade use
Written by the Qwotly product team. Last reviewed 26 July 2026. Educational guidance only, not accounting, tax or legal advice.
A safer way to use the result
- 1List the committed materials or booking requirement behind the deposit.
- 2State the exact amount and due date in the quote.
- 3Explain how the deposit is applied to the final invoice.
- 4Use written terms appropriate to the customer and obtain legal advice when needed.
Common mistakes
- Requesting a large deposit without explaining what it secures.
- Leaving payment dates, milestones or refund terms vague.
- Using the deposit before supplier or scheduling commitments are clear.
- Assuming one percentage is suitable for every job or customer contract.
Questions tradespeople ask
How much deposit should a tradesperson ask for?
There is no single correct percentage. The amount should be commercially justified, proportionate and clearly tied to materials, scheduling or other real commitments.
Should VAT be included in a trade deposit?
The tax point and VAT treatment can depend on the payment and supply. A VAT-registered business should confirm the correct treatment with HMRC guidance or an accountant.
Is a trade deposit refundable?
That depends on the contract, cancellation rights, work completed, costs committed and applicable consumer law. State the terms clearly and obtain legal advice for uncertain situations.
Continue the quoting workflow
Add the deposit to a clear quote
AI drafts the scope. You approve every number.