In the mass of information that came out of Budget 2012 one of the changes that is likely to affect most of our clients is the introduction of a €100 household charge. Below we have highlighted important changes due to take effect from March 2012.
The €100 household charge applies to every residential property situated in Ireland and is payable by 31 March 2012.
- The charge applies to owners of residential properties on 1 January 2012, subject to a limited number of exceptions.
- If a property is divided into flats, apartments or bedsits then the household charge will be payable separately in respect of each individual unit.
- The charge is due to be paid by 31 March 2012 and penalties apply for late payment, as follows:
- 10% of the outstanding amount if paid within 6 months
- 20% of the outstanding amount if paid between 6 – 12 months after the due date
- 30% of the amount outstanding if paid later than 12 months after the due date
- Late payment also attracts 1% interest per month
- The charge can be paid online at www.householdcharge.ie
The charge can also be paid by instalments. Where a person chooses this option, the direct debit mandate must be set up by 1 March 2012. The 4 instalments of €25 each will be taken on the following dates
- Instalment 1 – 13 March 2012.
- Instalment 2 – 14 May 2012
- Instalment 3 – 13 July 2012
- Instalment 4 – 10 September 2012
The household charge is on a self-assessment basis and it is up to each property owner to ensure that they are compliant.
The household charge is a temporary measure and it is expected that a valuation based property tax will be introduced as soon as possible.
Revenue have noted that, as is the case for the NPPR, the household charge will not be an allowable deduction when calculating the taxable Case V rental income.
NPPR Property Charge
This is a reminder to all owners of second homes including holiday homes and rented accommodation. Subject to specific exceptions, the NPPR charge applies to all residential property not used as the owner’s sole or main residence.
- The €200 NPPR charge for 2012 is determined on the basis of ownership of a property as at 31 March 2012.
- The charge is due to be paid by 30 June 2012.
- A late payment fee of €20 per month arises where the payment is not made by the due date and continues to roll up as long as the charge remains unpaid.
- The charge can be paid online by registering the property at www.nppr.ie or at your local city or county council offices by completing a registration form (which can be obtained online) and enclosing a cheque made payable to “LGCSB NPPR”.
- The details to be included for initial registration are (1) PPS Number; (2) name and home address (3) address of NPPR property.
- If you have previously registered online you may use your existing account number and details to login and pay the charge.
Where a property is divided into flats or bedsits, the NPPR will apply to each flat/bedsit separately.
If unpaid, both the household charge and the NPPR, together with late payment fees and accumulated interest, will become a charge against the property concerned and will continue to be such for 12 years after the charges became due. Any liabilities due on a residential property will need to be discharged in full before a sale of the property can be completed in order to avoid complications.
This is a summary of the household charge and NPPR and does not cater for every situation. McInerney Saunders offer Compliance Services to both individuals and businesses, to discuss these charges and more contact us now.