Below is an outline of how Revenue plan to administer the Local Property Tax “LPT” this year.
Important: Please note that some details of this process are currently being finalised by Revenue and so some of this process may change at a later date.
1. Issuing of Returns
During the 4-week period commencing on 11 March, Revenue will begin sending out the following to households:
(a) The LPT Return
- 2 pages long
- Contains a Property ID and a PIN number – required to access the online LPT system
- Separate section for agents (i.e. anyone acting on behalf of the taxpayer) to identify themselves as such
- Section for selection of preferred payment option
(b) The Revenue Guidelines
- Contain guidance on valuing your property, calculating the self-assessed LPT, completing the LPT Return and selecting an appropriate payment option
- Further property valuation guidelines will be available at www.revenue.ie from March, and this will include an online guide providing indicative property values.
(c) The Revenue Estimate
- Despite several contradictory reports, the Revenue Estimate is not a valuation of the property and is not to be relied upon as an accurate calculation of the LPT liability.
- LPT is a self-assessed tax and the onus is on taxpayers themselves to value their properties in accordance with Revenue’s valuation guidelines and to calculate their LPT liability accordingly.
2. Filing of Returns
The deadlines for filing the LPT Returns are 7 May 2013 for paper LPT Returns and 28 May 2013 for electronic LPT Returns.
- The following taxpayers must file the LPT Return online:
– Taxpayers owning more than one residential property,
– Taxpayers who are already required to submit tax returns online under
mandatory e-filing, and
– Companies who own residential properties.
- Where a property is in joint ownership, the owners must designate one person who will file the LPT Return.
- If the LPT Return is not filed on time, or if an incomplete Return is filed (e.g. no payment option is selected), the Revenue Estimate will be enforced very quickly. This means that taxpayers will quickly receive a letter from Revenue informing them that their employer has been instructed to deduct the amount of the Revenue Estimate from their salary. These deductions will be phased in accordance with taxpayer’s salary payment schedule.
- A Notice of Assessment will not issue unless Revenue opt to challenge the LPT Return which has been filed. An assessment can also be made where a self-assessment or Revenue Estimate has not been made.
3. Payment of LPT liability
- For taxpayers who opt for payment via deduction at source from salary or occupational pension, Revenue will issue revised P2Cs to employers or pensions providers during June 2013, and phased deduction at source will commence from 1 July 2013. For those who opt for payment via deduction at source from certain payments received from the Department of Social Protection or the Department of Agriculture, Food and the Marine, Revenue will issue an instruction to the relevant Department and phased deduction at source will commence from 1 July 2013.
- As noted above, where the LPT Return has not been filed by the due date, employers will be instructed to begin deducting the amount of the Revenue Estimate from the employee’s salary without delay.
- Commencement of payment via direct debit will begin on 15 July 2013 and payment via Single Debit Authority will be deducted on 21 July 2013.