Employers, local authorities, LPT agents, statistics, LPT legislation

Employers

Deduction at Source

A property owner can pay their Local Property Tax (LPT) from their:

• salary
• or
• occupational pension

spread over the year by Deduction at Source (DAS).

Employers and pension providers are obliged to make DAS available to their employees or pensioners.

If an employee selects this payment option, Revenue notifies the employer or pension provider of the amount of LPT to deduct.

You, as an employer or pension provider, must deduct LPT once notified. Revenue DAS instructions can issue at any time throughout the year. You must act on each notification.

Deduction for a new employee

Employers are obliged to register new employments. This is in all circumstances except where it is the employee's first employment in the State. You can register the employment by submitting a new Revenue Payment Notification (RPN) request for that employee.

The process for commencing and ceasing employees is part of your normal payroll process. We no longer require Forms P45 and P46.

We will confirm how much LPT is outstanding and issue a RPN to you. You can then commence deductions from salaries. You should spread the deductions evenly over the remaining pay days in the year.

You should not deduct LPT from a new employee's wages until you receive a RPN for that person.

What an employer must do

For LPT, an employer is obliged to:

• deduct the payments evenly over the pay periods up to year-end
• not alter or cease deductions unless notified by Revenue
• show LPT deductions on employees or pensioners' payslips
• deduct LPT from round sum expense, or lump sum, payments paid to the employee to cover expenses
• not deduct LPT from vouched expenses payments. This is where you reimburse the employee for actual expenses incurred in the performance of duties of employment.
• notify Revenue if there will be insufficient income to meet the full LPT liability for the year. You can do this through MyEnquiries or Revenue Online Service (ROS).

Deduction adjustments

The property owner must contact Revenue if deductions are incorrect. We will notify you if you have to change the deductions.

We will deal with the property owner directly for any refunds of LPT.

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