Deposits and Staged Payments: How Much to Pay and When

How deposits and stage payments typically work for local services, what is reasonable to pay upfront, and how to tie payments to progress safely.

Money is where most hiring disputes begin. Paying too much too soon leaves you with no leverage if the work stalls. Paying nothing until the end can be unfair to a provider who must buy materials or block out time. A good arrangement sits in between, with payments linked to clear points of progress.

Why providers ask for deposits

A deposit is not automatically a red flag. There are legitimate reasons:

• Materials must be bought before work can start, particularly bespoke or expensive items.
• The provider is reserving time that they could have given to other customers.
• Some customers cancel late, and a deposit offers some protection.

The question is not whether a deposit exists, but how large it is and what it is for.

What is reasonable

There is no fixed percentage that applies to every job. As a general guide:

• Small jobs of a few hours: often no deposit, payment on completion.
• Jobs needing specific materials: a deposit roughly covering those materials, ideally with a receipt or order confirmation.
• Multi-day or multi-stage projects: a modest initial payment, then further payments as defined stages are completed.

Be cautious of requests for a large proportion of the total upfront, or for the full amount before any work has been done. Ask what the money is for. A provider who can explain it, and agrees to see it written down, is behaving reasonably.

Linking payments to progress

For larger work, agree a schedule in writing, tied to observable milestones rather than dates. For example:

1. On booking: a small deposit to secure the slot or order materials.
2. When materials are delivered or first stage is complete.
3. At an agreed midpoint, such as first fix complete.
4. On completion and your inspection, with a final payment.

Keep the final payment meaningful, so you still have an incentive for the provider to finish and put snags right. A sensible final stage is a real amount, not a token.

What to check before paying

• Does the amount match what was agreed in the offer?
• Is the payment method traceable? See cash versus card and bank transfer.
• Are the account name and business details consistent with the provider you chose? See checking identity.
• Will you get a receipt or confirmation? See getting a receipt and invoice.

Paying through a platform

On Compito, you accept an offer and pay online, with the provider's identity verified and messaging available alongside. Keeping payments and conversation in one place gives you a clear record of what was agreed and paid. Avoid offers to move the payment outside the platform, since that removes the record.

Writing it down

Put the schedule in a message or in the offer, for example: "Deposit of £X on acceptance for materials. £Y on completion of tiling. Final £Z on completion and sign-off." Both parties should confirm. See agreeing scope in writing.

If a provider asks for more money mid-job

• Ask what for, and whether it is within the agreed scope.
• Ask for the request in writing.
• Do not pay in advance of work being done just because you are pressed.
• If it reflects genuine extra work, agree the price before it is done.

Pressure to pay immediately, particularly in cash, is a red flag.

If the provider disappears or work stalls

Stop further payments, set out in writing what has and has not been done, and give a reasonable deadline. Keep records of payments, messages and photos. Contact support if you booked through a platform. Citizens Advice can help explain your options, and general information on recovering money is in small claims basics. If you paid by card, your card provider may have a process for disputed payments, so ask them early.

For the provider's fairness

Pay on time once milestones are met. A customer who pays promptly and communicates well is one a provider will look after.

A worked example: a kitchen floor

Suppose a tiled kitchen floor is quoted at a typical £1,200. A fair schedule might be a small deposit on acceptance to order tiles and adhesive, a second payment once the old floor is up and the base prepared, and a final payment after tiling and grouting are finished and you have looked at the result. If the provider asks for most of the total on day one, ask them to show you the order for the materials and explain what the rest is for.

The shares are only illustrative and should reflect real costs, not a fixed rule.

Keeping your leverage

• Never pay a stage before the work for that stage exists.
• Keep a final payment large enough to matter to both sides.
• Do not sign a completion note until you have checked the work in daylight.
• Photograph progress at each stage, so there is a record.

Things that change the picture

For very small jobs a deposit may be unnecessary. For made-to-measure items such as bespoke joinery, a larger early payment can be fair because the item cannot be resold. For work in a rented property, check who is paying: the landlord or you. For legal questions about deposits and refunds, Citizens Advice and gov.uk are the places to look.

Frequently asked questions

Is it normal to pay a deposit?

For jobs needing materials or a reserved block of time, yes. For small, quick jobs it is less common.

Should I ever pay in full upfront?

Rarely, and only with a provider you have good reason to trust and a traceable payment. Generally, keep a meaningful sum back until completion.

Can I get a deposit back if I cancel?

It depends on what was agreed and what the provider has spent or lost. Ask for the terms in writing before paying.

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