Say in the quote itself how much you need before you start, when it's due and what it covers, then send a way to pay the moment the customer accepts. A deposit tends to suit larger or longer jobs and full payment suits small, fixed-price work. If you sell to consumers away from your premises or online, they usually have 14 days to cancel, so your terms need to say what happens to the money if they do.
In this article
The short version
- Put the upfront amount, due date and what it covers on the quote before it's accepted.
- A deposit suits larger jobs; full payment suits small, fixed-price work.
- Send a payment link as soon as the quote is accepted so the customer can pay there and then.
- Consumers buying at a distance or off your premises usually have 14 days to cancel.
- A payment before supply usually creates a VAT tax point if you're VAT registered.
When asking for money upfront is reasonable
Plenty of customers expect to pay something before work starts. It's most common, and easiest to explain, when:
- you're buying materials or stock for the job, such as a kitchen fitter ordering units
- the customer is new and you don't know how they pay
- the work is bespoke, so you can't sell it to someone else if they pull out
- you're booking a date, venue or supplier that costs you money to hold
- the job is small and fixed price, and invoicing afterwards costs more time than it's worth
Asking for money upfront from a long-standing customer who has always paid on time can feel like a change in the relationship. If you're introducing it for everyone, tell existing customers before the next quote, and explain what it pays for.
How to word it in your quote and terms
The payment terms belong on the quote, not in a separate email after it's accepted. A customer who accepts a quote showing a 50% deposit on acceptance has agreed to the deposit. One who's told afterwards may see it as a new condition.
Make each of these clear on the quote:
- the amount upfront, as a figure and not only a percentage
- what it's for, such as materials, booking the date or the full job
- when it's due, usually on acceptance or a set number of days before the start date
- that work starts, or materials are ordered, once it's paid
- when and how the balance is due
- what happens to the upfront payment if either side cancels
A deposit plus balance suits work that runs over weeks or where the final price may change. Full payment upfront suits fixed-price work you can deliver quickly, like a one-off service, a course place or a product made to order. Whichever you choose, give the quote an expiry date, so a customer can't accept an old price months later.
From accepted quote to payment
Upfront payments often stall between "yes, go ahead" and the money arriving. A customer who has to find your bank details, type a reference and remember to do it later may not do it today.
Send a payment request as soon as the quote is accepted, with the same line items and total, and a link that lets them pay by card, Apple Pay, Google Pay or pay by bank there and then. Pay by bank and cards confirm the payment straight away, so you can order materials or confirm the booking the same day. If the customer prefers bank transfer, give a reference that matches the quote.
In Adfin, you can send this as a payment request with the products and services from the quote, including items synced from Xero or QuickBooks, and Adfin shows an estimated tax breakdown. The customer pays from the link, and with automatic tax invoices switched on, Adfin creates the tax invoice when the request is paid, sends it to your customer and syncs it to your accounting software. If a request sits unpaid, Adfin's collection agents can send reminders by email, SMS or WhatsApp, within rules you approve.
For the balance, invoice it when the work is done or on the date you agreed. On a longer job, you might collect it by direct debit once the customer has signed a mandate, which works well when the final figure isn't known at the start.
Cancellations, refunds and VAT
Business customers are bound by the terms they agreed, so if your quote says the deposit covers materials already ordered and isn't refundable once they're bought, that's what you rely on. Keep it fair and tied to costs you've really incurred.
Consumers have extra rights. If you agree the contract at a distance, such as by email, phone or online, or away from your premises, such as at the customer's home, the Consumer Contracts Regulations usually give them 14 days to cancel. For services, the 14 days run from the day the contract is made. If they cancel, you must refund what they've paid within 14 days of being told.
A few points change that:
- You shouldn't start a service within the 14 days unless the customer expressly asks you to. If they do ask and then cancel, they pay a proportionate amount for what you've already done.
- Goods made to the customer's specifications or clearly personalised are excluded from the cancellation right.
- Bookings for things like catering or leisure services on a specific date are excluded too.
- Contracts made at your own premises aren't covered by the 14-day right.
So for consumer work, get the customer's request to start early in writing, and say in your terms how a cancellation is charged.
On VAT, if you're VAT registered, a payment received before you supply usually creates a tax point for the amount received, and you'll need to issue a VAT invoice for it. Check the details with your accountant.
Related guides
- Do you need to issue a VAT invoice after a customer pays a pro forma?
- How to take a deposit and collect the balance by direct debit
- Taking payments in the UK: a complete guide
- Payment terms that actually get honoured
- Payment links: what they are and why they get paid faster
Common questions
Can I ask for full payment before I start work? Yes, if the customer agrees to it. Put it on the quote before they accept, with the amount, due date and what it covers.
Is a deposit refundable if the customer cancels? For business customers it depends on the terms agreed. Consumers buying at a distance or off your premises usually have 14 days to cancel and get a refund.
How long do consumers have to cancel a service? Usually 14 days from the day the contract is made, for contracts agreed at a distance or away from your premises.
Can I start work during the 14-day cancellation period? Only if the customer expressly asks you to. If they then cancel, they pay a proportionate amount for what you've supplied.
Should I send a pro forma or a payment request? Either can work. Your customer needs a clear list of what they're paying for and a quick way to pay, whichever you call it.
Do I charge VAT on an upfront payment? If you're VAT registered, usually yes. A payment before supply normally creates a tax point for the amount received.
Sources
- Legislation.gov.uk - Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, regulations 27 to 36 (accurate as of November 2026) https://www.legislation.gov.uk/uksi/2013/3134/contents
- GOV.UK - Online and distance selling for businesses (accurate as of November 2026) https://www.gov.uk/online-and-distance-selling-for-businesses
- HMRC - VAT guide (VAT Notice 700) (accurate as of November 2026) https://www.gov.uk/guidance/vat-guide-notice-700
- Adfin - Changelog: product updates (accurate as of November 2026) https://www.adfin.com/resources/changelog
