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LPT - Deduction at Source vs Payment in Full

  • 20-08-2018 1:27pm
    #1
    the_amazing_raisin
    Registered Users, Registered Users 2 Posts: 12,535 ✭✭✭✭


    Hi all,
    I'll be due my first LPT payment next year and I'm struggling to understand a few things
    Mainly I'm trying to figure out if there's any advantage to paying the LPT through my wages versus paying it in full
    Does the deduction at source take place before or after tax has been deducted? This would result in a considerable saving vs paying it in full, but it doesn't say anywhere that I can find which is the case.
    Also, just wondering what procedure there is for valuing my house? Since I bought in 2017 I was just going to use that purchase price, but since then the developer has jacked up the price 20% for the same house. Ideally I'd like to use the lower amount since that puts me in a lower band, and that's what I paid for the house (therefore, in my opinion, what it's worth). I could see revenue taking a slightly different approach though, so just wanted to check how people are assessing their properties.

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



Comments

  • #2
    ACADasltiv
    Registered Users, Registered Users 2 Posts: 79 ✭✭ACADasltiv


    Having it deducted from your wages is just an easy way of spreading out the payments, there's no saving with it.

    For the value, the valuation runs on a 7 year cycle. You need to use the value of your property at 1 May 2013 and this will be used up until the new valuation cycle beginning in November 2019.


  • #3
    the_amazing_raisin
    Registered Users, Registered Users 2 Posts: 12,535 ✭✭✭✭the_amazing_raisin


    ACADasltiv wrote: »
    Having it deducted from your wages is just an easy way of spreading out the payments, there's no saving with it.

    For the value, the valuation runs on a 7 year cycle. You need to use the value of your property at 1 May 2013 and this will be used up until the new valuation cycle beginning in November 2019.
    Thanks, I suspected there was no savings to paying from salary but wanted to double check.
    The house is a new build so isn't liable for LPT until next year. Since property prices have been increasing rapidly, I'm a bit worried I'll be pushed into the next band up which is an increase of €90. I'm not particularly hung up over that amount, but it seems like I'm being penalised for something which is totally out of my hands

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • #4
    Stanford
    Registered Users, Registered Users 2 Posts: 1,194 ✭✭✭Stanford


    but it seems like I'm being penalised for something which is totally out of my hands

    Have you been paying tax while we bailed out the banks? Welcome to the FF legacy


  • #5
    CeilingFly
    Closed Accounts Posts: 3,378 ✭✭✭CeilingFly


    cruisey1987 wrote: »
    Thanks, I suspected there was no savings to paying from salary but wanted to double check.
    The house is a new build so isn't liable for LPT until next year. Since property prices have been increasing rapidly, I'm a bit worried I'll be pushed into the next band up which is an increase of €90. I'm not particularly hung up over that amount, but it seems like I'm being penalised for something which is totally out of my hands

    Bands will probably change valuation parameters, so you should still be in a similar band to a similar house in the area even if the house is 50% higher valuation as it was in 2013.

    My guess is some that were close to the top of the current bands will move up a band. I valued mine at 345k in 2013, todays its valued at 525k, I suspect I'll go up one band but not 4.


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