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Late Payment Interest Rate

The European Communities (Late Payment in Commercial Transactions) Regulations 2012 provide that 'interest' shall be payable in respect of a late payment.

The Regulations, which apply equally to the public and private sector, provide an entitlement to interest if payment, in respect of a commercial transaction, is late.

Applicable Late Payment Interest Rate 

  • Unless otherwise specified in an agreed contract, the Regulations provide that the interest rate will be the European Central Bank main refinancing rate (as at 1 January and 1 July in each year) plus 8 percentage points.
  •  The ECB rate in force on 1 January and 1 July apply for the following six months in each year. 
  • Penalty interest due for late payments should be calculated at a daily rate.

With effect from 1 January 2019, the late payment interest rate is 8.00% per annum (that is based on the ECB rate (as at 1 January 2019) of 0.00% plus the margin of 8%). This rate equates to a daily rate of 0.022%. 

Late Payment Interest Rate since 16 March 2013 to date

From 16 March 2013
(date on which new late payment legislation came into effect)

ECB Main refinancing Rate

Late Payment Interest Rate
(ECB rate + margin 8%)

16 March 2013

0.758.75

1 July 2013

0.508.50

1 January 2014

0.25

8.25

1 July 2014

0.15

8.15

1 January 2015

0.05

8.05

1 July 2015

0.05

8.05

1 January 2016

0.05

8.05

1 July 2016

0.00

8.00

1 January 2017

0.00

8.00

1 July 2017

0.00

8.00

 1 January 2018

0.00

8.00

 1 July 2018

0.00

8.00

1 January 2019

 0.00

8.00

 

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