Payment Terms and Cancellation Policy Template for Trades (UK 2025)

The Reality: Most payment disputes are not about money. They are about unclear terms. If the customer sees the rules in three places, you get paid on time.

If you need a full contract template, see How to Write Trade Business Contracts.

Policy template (domestic jobs)

Payment terms

• Payment due on completion unless otherwise agreed
• Deposits required for jobs above GBP [amount]
• Late payment fees apply after [days]

Cancellation policy

• Cancellations within [48] hours incur a fee of GBP [amount]
• Deposits are transferable to a rescheduled date within [30] days
• If the customer cannot reschedule within [30] days, [percent] of the deposit is retained

No-show policy

• If access is not provided within [15] minutes of the appointment, a callout fee applies

Weather delays

• Unsafe conditions trigger rescheduling at no extra cost

For no-shows, use Customer Not Home: Scheduled Appointment Response.

Policy template (commercial or high-value jobs)

Payment terms

• 40 percent deposit on acceptance
• 40 percent on start
• 20 percent on completion

Cancellation policy

• Cancellation within [7] days incurs GBP [amount] plus non-refundable materials
• Reschedule within [30] days to avoid full cancellation fees

Retention of work

• Work may pause if payments are late beyond [days]

When to enforce terms (decision guide)

• Repeat late payers: enforce strictly
• High material risk jobs: enforce deposit rule
• Busy season: enforce cancellation fees

If customers push back on deposits, read Customer Refuses to Pay Deposit: Red Flags.

Where to place terms (do all three)

1. In the quote
2. In the booking confirmation
3. On the invoice

This removes the “I did not know” excuse.

Script for enforcing terms (copy and paste)

Hi [Name], just a quick note that our payment terms are payment on completion. The balance of GBP [amount] is now due. Here is the payment link: [link].

If you need escalation, use Letter Before Action Template (Unpaid Invoice, UK).

Where Toolfy fits

Toolfy stores terms inside quote and invoice templates so they are always visible to customers. Start a free trial to set this up.

FAQ

Should I be flexible for loyal customers? You can, but make exceptions explicit and recorded.

Can I enforce late fees? Yes if the customer agreed to the terms in advance.

How should I communicate the policy? Include it in quotes, booking confirmations, and invoices.