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 July 2025, the late payment interest rate is 10.15% per annum (that is based on the ECB rate as at 1 July 2025 of 2.15% plus the margin of 8%). The daily rate is calculated as 10.15% divided by 365 days.
Interest calculator
Late payment interest can be calculated using this interest calculator.
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 | 0.75 | 8.75 |
1 July 2013 | 0.50 | 8.50 |
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 |
1 July 2019 | 0.00 | 8.00 |
1 January 2020 | 0.00 | 8.00 |
1 July 2020 | 0.00 | 8.00 |
1 January 2021 | 0.00 | 8.00 |
1 July 2021 | 0.00 | 8.00 |
1 January 2022 | 0.00 | 8.00 |
1 July 2022 | 0.00 | 8.00 |
1 January 2023 | 2.50 | 10.50 |
1 July 2023 | 4.00 | 12.00 |
1 January 2024 | 4.50 | 12.50 |
1 July 2024 | 4.25 | 12.25 |
1 January 2025 | 3.15 | 11.15 |
1 July 2025 | 2.15 | 10.15 |