Deduction at Source
A property owner can pay their Local Property Tax (LPT) from 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.
When this payment option is selected, Revenue notifies the employer or pension provider of the amount of LPT to be deducted.
You, as an employer or pension provider, must deduct LPT once notified. Revenue DAS instructions can be issued at any time throughout the year and must be acted on. You must account for and pay the deducted LPT to Revenue on Forms P30, P35 and P35L, as well as on any amendments to these forms.
Deduction for a new employee
If you receive parts 2 and 3 of a Form P45 from a new employee, you should send part 3 to Revenue.
We will confirm how much LPT is outstanding and issue a Tax Credit Certificate (P2C) to you to 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 P2C for that person.
What an employer must do
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. These emoluments are assessable to income tax under Schedule E
- 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 on Revenue Online Service (ROS).
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.