Proportionate refunds under the UK subscription rules
Updated Invalid Date. Based on the Digital Markets, Competition and Consumers Act 2024 and the draft 2026 Regulations and guidance. Not legal advice.
When a UK customer cancels during a cooling-off period, their liability for the payments in that period ends and you refund what they paid (draft reg 11, Regulations). You may keep a proportionate amount for what you supplied, but only in some cases.
When you can keep a proportionate amount
Services, in the initial period: only if you gave the cooling-off information and the customer expressly asked you to start before the 14 days ended. In a renewal period: only if you sent a compliant cooling-off notice (draft reg 19(2) and (3)). Otherwise, refund in full.
Digital content, in the initial period: if the customer gave express consent, acknowledged losing the right and you confirmed both on a durable medium before supply began, the initial right to cancel is lost (draft reg 7). If not, they owe nothing for content supplied. In a renewal period: proportionate, if the cooling-off notice was given (draft reg 20).
Whether your product is a service or digital content is your call to make (Guidance FAQ 6).
How to calculate it
The amount you keep is a proportion of the payment for the full supply, based on what was supplied from the first day of the cooling-off period until cancellation (draft regs 19(5), 20(3)). The official examples (Guidance §7.3 and §7.4):
| Plan | Cancelled | Customer pays |
|---|---|---|
| £365 a year, unlimited access | Day 4 | £4 |
| £50 a month for 10 visits | After 2 visits | £10 |
| £365 a year film library, renewal period | Day 4 | £4 |
| £50 a month for 10 downloads, after a free trial | After 2 downloads | £10 |
A proportionate refund is the minimum. You can always refund in full.
Deadline and method
Refund without undue delay and within 14 days beginning the day after cancellation, using the same payment method unless the customer agrees otherwise (draft reg 21). With Stripe, that means a refund against the original charge.
Try the refund calculator.
Renewproof sends these notices from your Stripe account, on schedule, with an evidence log. Pre-order for $1 or try the reminder calculator.