What are the legal requirements for a catering quotation?
A quotation is more than a price list. In the UK there are legal rules determining what information must appear on a quote and what happens legally when a client accepts it. Knowing those rules prevents disputes further down the line and demonstrates to clients that they are dealing with a professional business. This article sets out the key requirements, from mandatory details to VAT rules and validity periods.
Legal requirements for quotations: what you need to know
In UK law, a quotation is an offer in the contract law sense. Once a client accepts it, a binding contract is formed. The document moves from being a price proposal to being an agreement. The law does not dictate a standard format for a quote, but requirements flow from the Companies Act, the Supply of Goods and Services Act, and VAT legislation.
The key principle is that your quote must clearly identify who is supplying what, at what price, under what conditions. Any ambiguity here tends to become a problem after the job is done.
What information must appear on every quotation
While there is no single prescribed template, a legally sound quote to a business client should include:
- Your full business name, registered address, and company registration number (if a limited company)
- Your VAT registration number (if VAT registered)
- Date the quote is issued
- Validity period (without one, the quote remains open for a "reasonable time", typically 14 to 30 days)
- A clear description of the services or goods being supplied
- Price excluding VAT, the VAT amount and the total price including VAT
- Payment terms: due date, bank details, any deposit requirement
When quoting to consumers rather than businesses, additional consumer protection rules apply. Include any cancellation rights, deposit conditions, and complaint procedure information.
How long is a quotation valid
UK law does not set a fixed validity period for a quote. If you do not state one, the quote stays open for a "reasonable time." In catering, 14 to 30 days is generally considered reasonable. After that, you can withdraw or revise the offer even if the client has not yet accepted.
The practical recommendation is to always state a specific expiry date on your quote: "This quotation is valid until [date]." That prevents a client returning three months later expecting the original price when your ingredient costs have risen.
Your rights and obligations after issuing a quotation
Once you issue a quote and it is within the validity period, you are generally bound by the price and terms stated. You can withdraw it before acceptance, but once a client confirms in writing, a contract exists. You cannot unilaterally raise the price after that point unless you have included a clause in the quote or your terms allowing for price adjustment in specific circumstances, such as significant ingredient cost increases.
A signature or written confirmation by email carries the same legal weight. Verbal acceptance is in principle binding, but very hard to prove in a dispute. Always confirm acceptance in writing.
VAT rules for catering quotations
In the UK, catering services are generally standard-rated at 20% VAT. However, the rules distinguish between catering supplied on-site and food supplied for consumption off the premises. Cold takeaway food is typically zero-rated, while hot food and on-site catering are standard-rated. If your quote covers both types of supply, you must show each element and the applicable rate separately.
Always check that your VAT figures are correct on the quote: price excluding VAT, the VAT percentage, the VAT amount in pounds, and the total including VAT. Errors here can lead to HMRC corrections or client disputes about the final amount owed.
How to produce legally compliant quotations consistently
The simplest way to ensure every quote is legally sound is to work from a fixed template that includes all required fields. Review that template at least once a year: if VAT rates, your bank details, or your terms and conditions change, every new quote must reflect the update.
Additional tips:
- Attach your terms and conditions as an appendix and reference them explicitly in the quote body
- Use a unique quote number on every quote so you can identify exactly which document a client is referring to
- Always send quotes by email rather than verbally, so you have a written record
- Keep all accepted quotes for at least six years for tax purposes
Frequently asked questions
Does a catering quote have to show a company registration number?
If you operate as a limited company, yes: the Companies Act requires you to display your registered company number on business documents including quotes. Sole traders and partnerships are not required to show a registration number but should show their business name and address clearly.
What happens if a client accepts a quote and then changes their mind?
Once a client accepts your quote in writing, a binding contract exists. You are entitled to payment or compensation if they cancel. State your cancellation policy clearly in the quote, including what charges apply at what notice period, so both parties know exactly where they stand.
Can I raise my price after issuing a quotation?
Not without a specific contractual right to do so. If you want the ability to adjust for cost increases, include a price review clause in your quote or standard terms. Without such a clause, you are bound by the quoted price for the validity period.
Is a verbal acceptance legally binding?
In English contract law, yes, verbal acceptance can form a binding contract. But proving what was agreed verbally in a dispute is very difficult. Always confirm acceptance in writing, even a brief email saying "Thank you for accepting quote [number]" is sufficient.
What VAT rate applies to catering services?
On-site catering and hot food are standard-rated at 20% VAT. Cold takeaway food is generally zero-rated. If your quote includes both types, list them separately with the applicable VAT rate against each element. If you are not VAT registered, no VAT should appear on your quote.
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