UK rules: deposits, no-show charges and cancellations (general guidance)

General guidance on UK rules for deposits and no-show charges: clear terms, fair charges and cancellations.

General guidance, not legal advice. This is how UK consumer law generally treats deposits and no-show charges at hospitality venues, in brief, so Rezo can point you the right way. It does not cover every case: check the official guidance on gov.uk (https://www.gov.uk/government/publications/unfair-contract-terms-cma37) and take advice for your own terms if you are unsure.

Tell guests the terms before they commit

Guests must be told clearly — before they book and pay — how much the deposit or charge is, when it is taken, when it is refunded, and what happens if they cancel late or don't arrive. Terms hidden in small print, or only shown after payment, are unlikely to be fair.

Keep charges fair

Under the Consumer Rights Act 2015, terms in consumer contracts must be fair and transparent. A no-show or late-cancellation charge should reflect the loss you are likely to suffer (for example the covers you could not resell), not punish the guest. A reasonable cancellation window, and refunding or crediting a deposit when a guest gives proper notice, help keep a policy fair.

No 14-day cooling-off period for a set date

The 14-day right to cancel that applies to many online and phone purchases does not apply to services for leisure activities booked for a specific date or time — which includes a table booked at a venue for a set evening. Your own published terms decide what happens when a guest cancels.

Card payments and disputes

A guest can still dispute a card payment with their bank. Clear terms the guest saw and accepted when they booked, and a record of the booking, are what help you answer a dispute.

Where to check

• The Competition and Markets Authority's guidance on unfair contract terms (CMA37): https://www.gov.uk/government/publications/unfair-contract-terms-cma37
• Your rights as a business selling to consumers: https://www.gov.uk/consumer-protection-rights

Rezo never gives legal advice for your particular case.

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