Local Property Tax (LPT)

You will be aware that Local Property Tax is being introduced from 1 July 2013. The LPT legislation provides a number of payment options for residential property owners to meet their LPT liability. One of the options allows the property owner elect to have the tax deducted from their wages or occupational pension. You may already have had enquiries from your employees or from occupational pension recipients about this.

For 2013, a property owner can opt to pay the tax on a phased basis over the period July to December 2013 by having it deducted at source from their wages or occupational pension and so you will be required to make this facility available to your employees or to pension recipients from July 2013 onwards.

In order to facilitate the introduction of the option to pay LPT by way of deduction from wages or occupational pensions, Revenue has held extensive discussions and briefing sessions with payroll practitioners, software developers and employers’ representatives over a number of months to ensure that employers have the necessary systems in place to deduct LPT at source from July 2013 onwards. That communications process will continue over the coming months.

Where one of your employees or a pension recipient chooses deduction at source as their LPT payment option, Revenue will notify you via the employer tax credit certificate (P2C) to deduct LPT from your employee's net salary or pension recipient's occupational pension as appropriate. You must commence deductions of LPT on receipt of the P2C but no earlier than 1 July 2013 and spread these deductions evenly over the pay periods occurring on or between 1 July and 31 December 2013. You will be required to account for and remit the deducted LPT to Revenue on Forms P30 and P35.

You should ensure your payroll software is updated to cater for LPT deduction at source.

For further information on how deduction at source from salary/occupational pension will operate, please read the Frequently Asked Questions (FAQs) on our website (www.revenue.ie/en/tax/lpt/employers-pension-providers.html) or contact the Employer

Helpline at 1890 25 45 65. A link to the Finance (Local Property Tax) Act 2012 (as amended) is available on www.revenue.ie for reference.

Taxation of Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit from 1 July 2013

With effect from 1 July 2013, Maternity Benefit, Adoptive Benefit and Health & Safety Benefit, including any child dependant additions, will be taxable in full. USC and PRSI will not apply.

Tax will not be deducted ‘at source’ by the Dept of Social Protection (DSP) on these payments. Instead, as part of the on-going exchange of information arrangements between DSP and Revenue, Revenue will receive the payment details which will be updated onto Revenue's records.

Individuals who pay their tax through the PAYE system will, where possible, have their annual tax credits and cut-off point reduced by the amount of these payments.

Employers/pension providers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).

As Maternity Benefit, Adoptive Benefit and Health & Safety Benefit are being taxed by reducing employees’ tax credits and cut-off points on P2Cs, employers/pension providers are not to include figures for these payments on forms P45, P60 or P35L.

Full instructions can be found in the Employer's Guide to PAYE

The Employer Customer Service Unit provides information and support to employers.

Contact details as follows:

Telephone: 1890 25 45 65 (+ 353 67 63400 if ringing from outside the Republic of Ireland)

E-Mail: employerhelp@revenue.ie

Source: Revenue Commissioners.www.revenue.ie. Copyright Acknowledged.