Deposits, VAT and Payment Terms for UK Trade Quotations
Clear payment wording helps both business and customer understand timing and totals. These examples are educational, not legal, tax or accounting advice.
Why request a deposit
A business may request a deposit to reserve capacity or fund job-specific materials. The amount should reflect the real circumstances; no single percentage is universally correct. Explain what it covers, when it is due and the applicable cancellation/refund position.
Materials and staged payments
For longer work, a materials payment or milestones may reduce cash-flow pressure. Tie stages to understandable events or dates and show payments already made. Avoid vague wording that makes the remaining balance hard to calculate.
VAT clarity
State whether displayed amounts include or exclude VAT and use the business’s actual VAT status. For example, £1,000 net plus illustrative VAT at 20% is £1,200 gross. A non-VAT-registered business should not present VAT as though it is charging it. Confirm treatment with an accountant or HMRC guidance.
Due dates and completion
Specify an actual due date or a clear number of days, the accepted payment methods and when balance becomes due. Describe how approved variations affect staged payments or the final invoice. Do not rely on hidden or contradictory terms.
Validity and changed work
A quotation validity period can manage supplier price and availability changes. If scope changes, document the variation and its price/payment effect. Obtain appropriate legal advice for consumer cancellation rights, late-payment remedies or disputed terms.
Continue from guidance to your own figures
Use the free calculator with your own costs. Document credit use varies by the document type shown inside Cloudfyre.