Late Payment Law in Ireland

What you're legally owed

When a B2B invoice goes unpaid in Ireland, the governing statute is European Communities (Late Payment in Commercial Transactions) Regulations 2012. It gives freelancers and small suppliers automatic rights to statutory interest and a flat compensation fee on every overdue invoice — no contract clause required.

Statutory interest

ECB refinancing rate + 8 percentage points (B2B)

~10.65% per year in early 2026

Flat compensation fee

€40 / €70 / €100 (sliding scale)

compensation for recovery costs

Default payment term

30 days from receipt of invoice; max 60 days B2B

Public sector max

30 days

These amounts accrue automatically from the day after the invoice due date. You do not need a contract clause to invoke them — the statute creates the right directly. A contract can set a higher rate, but not a lower one.

How to enforce it in Ireland

The primary enforcement path for freelancers in Ireland is the District Court Small Claims.

File online at the Courts Service for debts up to €2,000 with a fee of €25. For larger commercial debts, the District Court handles claims up to €15,000 and the Circuit Court up to €75,000.

Small claims limit: €2,000 (Small Claims Procedure); €15,000 (District Court).

Official portal: www.courts.ie/small-claims-procedure

What to do this week

1. Add a late-fee clause citing SI 580/2012 to your contract template. Use the freelance contract template as a starting point.
2. Add one line to your invoice footer: “Late payments accrue interest under SI 580/2012 at ECB refinancing rate + 8 percentage points (B2B), plus a €40 / €70 / €100 (sliding scale) compensation for recovery costs.”
3. When an invoice goes overdue, use the free late-fee calculator to get the exact amount owed, then send a formal demand letter citing the statute. The demand letter guide walks through exactly what to include and what to leave out.
4. If the letter's deadline passes, run the escalation playbook — or file directly via the District Court Small Claims, which is designed to be used without a lawyer for undisputed debts.

One thing most freelancers don't know

Ireland implements the EU Directive almost verbatim, including the sliding €40/€70/€100 flat fee introduced in the UK's LPCDA — one of the cleaner, clearer implementations in the EU.