The European Communities (Late Payment in Commercial Transactions) Regulations 2012 provide that where late payment interest falls due in respect of a payment, in addition to this amount, the supplier is also automatically entitled to “compensation for recovery costs”, without the necessity of a reminder.
Regulation 9 of SI 580 of 2012, refers:
“9(1) It shall be an implied term of every commercial transactions that where late payment interest becomes payable under Regulation 4, the supplier shall be entitled, in addition to the late payment interest, to the amount specified in the Schedule to these Regulations as compensation towards relevant recovery costs incurred by the supplier as a consequence of late
Schedule of Compensation Costs:
|Amount of Late Payment (i.e. Invoice Value)||Compensation Amount |
|Not exceeding €1000||€40|
|Exceeding €1000 but not exceeding €10,000||€70|