LPT Deduction at Source from Wages/Salary & Occupational Pension

Property owners who are liable for the Local Property Tax (LPT) have the option to make one single payment or by phased payments over the period July to December 2013. One of the options for phased payments provided for in legislation is for a property owner to have the LPT payment deducted at source from their wages/salary or occupational pension.

Revenue has recently published a notice for employers and pension providers on the operation of LPT deducted at source. In this notice, employers and pension advisers are advised of the following:

• If a property owner has requested the deduction of LPT at source, Revenue will notify you to deduct LPT from the employee’s net salary or pension via the employer tax credit certificate (P2C).
• Employers must commence deductions on receipt of the P2C but not before 1 July 2013 and must be spread evenly over the period on 1 July to 31 December 2013.
• Employers are required to account for and remit the deducted LPT to Revenue on Forms P30 and P35.
• Ensure that your payroll system is updated to deduct the LPT at source from 1 July 2013.

For more information about the LPT, visit the Revenue website.