Local property tax (LPT) and household charge defaulters can expect lighter wage packets from this month following the implementation of deductions at source by employers.

More than 40,000 employers and occupational pension providers have already been instructed to begin withholding the sums owed to the Revenue Commissioners, and up to 160,000 more will be directed to do so over the summer. The money owed will be taken in equal instalments from wages until the end of the year.

Some 50,000 self-employed defaulters will also be contacted this month and advised of the penalties for their failure to pay. These include referral of their case to a sheriff or solicitor and refusal of a tax-clearance certificate.

Since April 1st, penalties and interest apply to those who have not paid the 2012 household charge or have not filed and paid their 2013 and 2014 LPT, as well as those who have undervalued their property or claimed an exemption from property tax to which they were not entitled.

Interest has been charged on outstanding arrears not paid by March 31st at a rate of .0219 per cent per day from the date the tax was due. In relation to the 2013 tax and the household charge, that date was July 1st, 2013, and for the 2014 tax the interest will apply on the daily rate from January 1st this year.

Second-home owners

Separately, €417 million has been collected from second-home owners through the now defunct non-principal private residence charge. Almost one third – €132.5 million – has been collected by the four Dublin local authorities alone.

The charge has been replaced by the property tax, but still must be paid and almost €20 million has been collected in arrears so far this year. The charge applied from 2009 to 2013 to any residential property which was not the normal place of residence of the owner.

Landlords and other second-home owners have until August 31st to pay up to avoid additional penalties. If payment is not made in full, or if settlement terms are not agreed by the end of that period, an additional late payment fee of €120 for each year the charge was not paid is applied on September 1st, 2014, and the entire liability rises 50 per cent.

LPT database

Minister for the Environment

Phil Hogan

said authorities were using the LPT database to find defaulting landlords.

“While I am pleased with the collection rates to date, I am anxious to ensure that non-compliant owners continue to engage with local authorities to ensure that all outstanding liabilities are cleared as soon as possible.”