LPT Surcharge

mcsean2163 · 30-03-2021 1:01am #1

I was informed tonight my accountant that because I had not paid my LPT, I have to pay 10% of my income to the government. LPT was €420.

I paid the outstanding LPT charge but am absolutely in shock to discover I now have to pay 10% of 2019 income to revenue because I forgot to pay the LPT. That seems really severe for a simple mistake. They are looking for €6,000. Does that seem correct?

https://www.revenue.ie/en/property/local-property-tax/what-happens-if-you-dont-comply/local-property-tax-lpt-surcharge.aspx#:~:text=A%20chargeable%20person%20or%20company,Gains%20Tax%20(CGT)%20liability.

mynameisjohnny · 30-03-2021 1:09am

They'll probably cap the surcharge at €420 which is the amount of LPT that was due. You'll have to contact LPT to request this though, probably handiest to do this through the MyEnquiries on the revenue website.
Just explain that it was an oversight that you forgot to pay the LPT on time

beachhead · 30-03-2021 1:20am

I presume you are self employed or PAYE registered-and required to submit a tax return under PAYE.In either case to be tax compliant you must have paid the LPT on any properties you own.Your accountant would have known this and should have told you/advised you last year(if,aware that you owned property,but wouldn't he/she be aware) when LPT notifications were issued.
It is normal practice to pay tax(not,100%) in advance of the year it is due.I mean pay tax in October 2020 for tax due in 2021.This,applies to self employed and those taxpayers on PAYE who submit their own tax return.Does your accountant mean you pay 10% now on the e420 paid on your LPT? Talk to Revenue and ask your accountant for clarification.

mcsean2163 · 30-03-2021 1:53am

mynameisjohnny wrote: »

They'll probably cap the surcharge at €420 which is the amount of LPT that was due. You'll have to contact LPT to request this though, probably handiest to do this through the MyEnquiries on the revenue website.
Just explain that it was an oversight that you forgot to pay the LPT on time

Thanks, I just got the email last night. I'll have to follow up with accountant. €6,000 seems like a very expensive mistake. I guess it's Ireland....

Buddy97mm · 30-03-2021 8:30am

AFAIK the surcharge is 10% of the tax liability for the year not 10% of your income.

Stratvs · 30-03-2021 10:35am

The surcharge is 10% of the tax charge not 10% of the income. Once the LPT is paid the surcharge is capped at 100% of the LPT ( so basically you end up paying the LPT charge twice, once as LPT and once as a surcharge ) and any excess would be refunded/credited.

When completing the self-assessment section of the F11 you must specifically enter zero or an amount in the field "surcharge for non payment of LPT" so I normally do not submit a client's return before ensuring that the LPT is paid.

A recurring annual debit or monthly standing order set up through the LPT portal is one way to avoid it being missed.

mcsean2163 · 30-03-2021 12:43pm

Stratvs wrote: »

The surcharge is 10% of the tax charge not 10% of the income. Once the LPT is paid the surcharge is capped at 100% of the LPT ( so basically you end up paying the LPT charge twice, once as LPT and once as a surcharge ) and any excess would be refunded/credited.

When completing the self-assessment section of the F11 you must specifically enter zero or an amount in the field "surcharge for non payment of LPT" so I normally do not submit a client's return before ensuring that the LPT is paid.

A recurring annual debit or monthly standing order set up through the LPT portal is one way to avoid it being missed.

Well that sounds better than the response from revenue.