Late payment interest rate – January 2018 update

The late payment legislation allows businesses to automatically levy penalty interest on late payments in business-to-business transactions, i.e. where payment is not received by the due date agreed in the contract or after 30 days where there is no contractual payment period specified.


Under the Late Payment in Commercial Transactions Regulation, the interest at the rate of the European Central Bank rate plus 8% will apply to payments made after the 30-day payment period has expired (in the absence of a written contract specifying an alternative payment period). 


As of 1 January 2018, the current rate is 8.00%, which equates to a daily rate of 0.022%. This is based on the ECB rate (as at 1 January 2018) of 0.00% plus the margin of 8%.  Penalty interest due for late payments should be calculated on a daily basis.


The full SFA Late Payments Guideline is available here.







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SFA E-Zine – The Tuesday Edition
Recent press coverage
GDPR tip – What are the conditions for processing special category data?
How to effectively manage sporadic sick leave absences
Late payment interest rate – January 2018 update
Ibec's Quarterly Economic Outlook
Cut your energy bills by up to 20% with support from SEAI
Introduction to selling to government
SFA Business Connect
Prepare for success – Essential advice for new and micro businesses
Health & safety courses to reduce the risks in your business