The filing of a return for payment of the Local Property Tax (LPT) for 2014 must be completed in November 2013. If you choose to pay by Debit/Credit Card, the LPT for 2014 will be deducted immediately. This seems particularly unfair given that the payment is not due until the 1st January 2014 and it is being deducted at run up to Christmas which is generally the most expensive time of the year for people. The Revenue Commissioners has explained that the payment is taken immediately if you choose to pay by Debit/Credit Card as “this is the nature of the banking and credit card systems”.

What do you need to do?

The liability date for the LPT is the 1st November 2013 and the owner of a property on this date is liable for the tax for 2014. The Revenue Commissioners are asking liable persons to file a return setting out how you want to pay the LPT for 2014. You can file a return as follows:

1.  You can file a paper return which must be received by the Revenue on or before the 14th November 2013.
2.  You can file a return online which must be completed on or before the 27th November 2013.

What are your payment options?

Single Debit Authority

Payment of LPT can be made in full by way of a Single Debit Authority/Instruction which is the equivalent of an electronic cheque. This is a once off payment and only works with Irish bank accounts and other Irish Financial institutions, including Credit Unions. If you choose this option you must give your bank details and the amount of the LPT liability. The LPT will be debited from your account by Revenue on 21 March 2014.

Deduction at source from your salary or occupational pension

If you select this option, payment will be spread evenly over the period 1 January 2014 to 31 December 2014. The amount of each instalment will depend on the number of salary, wages or pension payments you are due to receive in this period. If you choose this option you must provide your Employer or Pension Provider’s Name and your Employer or Pension Provider’s Tax Registration Number. By selecting this option you will not incur any additional charges once you complete your payment of your LPT by the end of 2013.

Deduction at source from certain payments received from the Department of Social Protection

This option to similar to deduction at source from salary or occupational pension. If you select this payment option, Revenue will notify the Department of Social Protection (DSP) to commence deduction of LPT from your DSP payment from January 2014 onwards. The deduction will be spread evenly over the period 1 January 2014 to 31 December 2014 however deduction of LPT from a DSP payment cannot reduce your DSP personal rate payment to less than €186 per week. No additional charges by choosing this option.

Deduction at source from scheme payments from the Department of Agriculture, Food and Marine

This option to similar to deduction at source from salary, occupational pension or DSP. By selecting this option, the Revenue will notify the Department of Agriculture, Food and the Marine (DAFM) to commence deduction of LPT from your scheme payments from January 2014 onwards. Payment is spread evenly over period 1 January 2014 to 31 December 2014 and you are not liable for additional charges.

Direct Debit

Direct Debit deductions will be taken on a monthly basis, in equal instalments and will be deducted from your nominated account on the 15th day of each month up to 15 December 2014. This option can only be set up using a current account in an Irish bank/ Financial Institution including Irish Credit Union. If you choose this payment option, you need to give the Revenue your bank name, account details, your PPSN and the amount of the LPT. There is no additional charges imposed by the Revenue however normal direct debit fees will be charged by your bank.

Debit/Credit Card

By selecting this option, who will pay the LPT for 2014 in full in November 2013. The Revenue does not charge additional charges however your bank may charge a transaction fee.

Cash payments through approved service providers

You can pay your LPT liability in cash through the approved payment service providers either in one payment (by 1 January 2014) or you can phase the payments over the period January to December 2014. Phased payments can be made on a weekly or monthly basis. The 3 approved service providers are An Post, Omnivend and Payzone. You need the Property ID or your PPSN to choose this option. These approved service providers charge different fees and this may be the most expensive option to choose.

Cheque or postal order

If you select this payment option, you must send your cheque/postal order and your LPT1A Payment Instruction form to Revenue by 14 November 2013. The cheque/postal order must be made payable to the Collector General and you must put your Property ID on the back of the cheque/postal order. You have to send your cheque/postal order and the completed LPT1A Payment Instruction form to Revenue, LPT Branch, P.O. Box 1, Limerick by 14 November 2013.

The above is a general guide about the option available for payment of the LPT. For more details information, you can visit the Revenue’s LPT website.

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