With effect from 1 January 2021, the late payment interest rate is 8.00% per annum (that is based on the ECB rate as at 1 January 2021 of 0.00% plus the margin of 8%). This rate equates to a daily rate of 0.022%.
Penalty interest due for late payments should be calculated on a daily basis.
Unless otherwise specified in an agreed contract, the penalty rate is the European Central Bank main refinancing rate plus 8 percentage points.
The ECB rates in force on 1 January and 1 July apply for the following six months in each year. Only one ECB rate will apply to a late payment – that is the ECB rate in force on the payment date.
The ECB rate can be checked on the Central Bank the Financial Services Authority of Ireland website.