Late Payments Legislation - Interest Rate Change
Under the Late Payment in Commercial Transactions Regulations, interest at the rate of the European Central Bank rate plus 8% can be applied to payments made after a 30 day payment period has expired (in the absence of a written contract specifying an alternative payment period). With effect from 1 July 2015 the late payment interest rate is 8.05% per annum (that is based on the ECB rate of 0.05% plus the margin of 8%). That rate equates to a daily rate of 0.022%. Penalty interest due for late payments should be calculated on a daily basis.
A copy of the SFA Guide on Late Payments can be downloaded by clicking here.
A copy of the SFA template “Terms & Conditions of Trade” can be downloaded by clicking here.
For specific queries on late payments, please contact the SFA, Tel: 01-605 1602/1626/1668 or e-mail: email@example.com.