Recently I have come across several clients who have not paid the ‘household charge’ in 2012. This is a cause for some confusion with the introduction of the LPT (property tax) this year. The Household Charge is an annual charge introduced for 2012 which is payable by owners of residential property. It is a matter for owners of residential properties to register and pay the Household Charge on or after the 1st January 2012. If you have not paid this charge, do not ignore it. It is still due and will cost €130 if paid before the end of April, but this will increase if not paid by the end of April. It should be noted that from 1 July 2013, any outstanding Household Charge will be increased to €200 and added to the Local Property Tax due on the property.
In effect, the arrears of the Household Charge will be converted into the LPT and collected through the LPT system. The Revenue Commissioners will pursue this additional liability when the LPT system is fully operational. Please note that Interest and penalties under the LPT system will apply to the additional €200.
In summary, ‘household charge’ arrears should not be ignored. Do not confuse any arrears due with the new LPT (property tax). Both are due and will be collected by the Revenue Commissioners.
Eoin Kehoe is the owner of Kehoe Auctioneers, an auctioneering and estate agency firm in Carlow town.