Property owners in employment or in receipt of an occupational pension can opt to pay their LPT through deduction at source from salary or pensions. In addition, where property owners fail to pay their LPT, Revenue may instruct their employer/pension provider to deduct the payment at source. The same form or instruction issues to the employer/pension provider whether it is a “voluntary” or “mandatory” instruction.
Revenue are writing to employers who appear to have outstanding LPT liabilities on record for the 2013 tax year. Revenue will demand payment as provided under Section 960E (2) of the Taxes Consolidation Act 1997. The demand will be followed up with debt recovery/enforcement action as necessary. This may include interest, which will be calculated from the due date up to the actual date payment is received. Penalties may also be imposed for failure to deduct and pay over the LPT as instructed.
Where an Employer’s Tax Credit Certificate (P2C) was received for an employee for the 2013 tax year with LPT liability but the employer failed to account for the LPT, they should immediately file an amended P35 and P35L and pay any balance outstanding.
For the 2014 tax year instructions are continuing to issue in relation to LPT for 2014 and arrears of Household Charge (HHC). Employers/pension providers who receive a P2C instruction should implement it immediately.
Where an employer/pension provider does not deduct the LPT as instructed, the employer/pension provider becomes liable for the amount due. Non-operation of the instruction may result in interest charges, penalties, refusal of a tax clearance cert and increases the chances of a tax audit.