Guide to paying the Local Property Tax 2014

Confused about how to pay next year’s property tax? Well, you’re not the only one.

Despite the fact that more than 1.5 million tax returns were filed this year, people are still scratching their heads about how to go about it next year, and it’s easy to see why.

The payment system involves a myriad of options and different dates which could perplex even the most straight-thinking of us. So what do you need to know?

I haven't received a letter yet – what do I need to do?
If you paid your tax for 2013 by "phased payment method" – that is by monthly deduction at source from your salary, pension, certain Government payments or by direct debit from your bank account (or indeed if you got a deferral) – then you will not get a letter from Revenue.

Instead, the same payment method will automatically apply for 2014. If you’re happy with this, you don’t need to do anything.

However, if you want to pay in full instead this time around, you can change how you pay by digging out your details from earlier this year and accessing the service online by the deadlines. But you will need to do it yourself: there will be no letter.

What's this about a November deadline?
Revenue has asked people to notify it how they intend to pay by certain deadlines: November 7th if you do so by letter, or November 27th if you use its online service at revenue.ie.

This doesn’t necessarily mean you have to pay the tax by this date, but you do have to make contact with Revenue and inform them of your choice.

Note that the ownership date for 2014 is November 1st, 2013. So, if you own a property on this date you must pay the tax – even if you sell it before the start of 2014.

I want to pay it in one go. How do I do this?
If you paid the tax in a lump-sum this year, you can do so again for 2014. Simply take the log-on details you received in your letter from Revenue and use them to access their online service at revenue.ie.

Remember, if you pay by card – either debit or credit – the payment will be deducted on that date by Revenue, so you could end up paying it some months ahead of when you need to do.

If you want to push it out a little bit, you can do so by paying by cash or debit card/credit card through a provider such as An Post.

You will then have until January 1st, 2014 to pay the tax – a date that is, funnily enough, missing from Revenue’s letter. However, this might be more expensive in the long-run (see below).

You can also pay in full via an electronic debit from your account (described by Revenue as a Single Debit Authority).

This gives you a longer time to pay, as the payment will not be debited until March 21st, 2014.

I can't afford to pay it all at once. Can I pay it in instalments?
The good news is that it's easy to spread the repayments over the course of the year. There are three options for doing so.

1) Opt for deduction at source from wages etc – this kicks in from January 1st.

2) Pay by cash through an approved provider such as An Post or shops that have a Payzone service – this must be done by January 1st.

3) Set up a direct debit. Payments will start on January 15th and will continue on the 15th of each month thereafter. So, if your tax comes to €300, you will have to pay €25 a month.

Remember that paying through a provider such as An Post may incur charges. An Post charges a service fee of €1; Omnivend charges 4 per cent of the transaction amount – or €20 on a €500 bill; and Payzone charges €2 on amounts over €100.