Household charge

Questions and answers

What is the household charge?It is a new annual charge, the first tax on domestic property since rates were abolished in 1997. The flat rate of €100 is temporary. A new tax based on site value will be introduced next year.

Who is liable to pay?Every homeowner, including the owners of rental property. The best estimate is that 1.6 million households are eligible to pay but nobody knows how accurate that figure is. Another 200,000 households are exempt (local authority houses) or are eligible for waivers (unfinished estates, for example).

Why has it been so problematic?Unlike income taxes, it is not collected by the Revenue Commissioners. Instead the tax relies on householders to self-register and pay. The second issue was that there is no proper households database in the State, so it was not possible to send bills or invoices.

Thirdly, the methods of payment were limited and difficult for some groups in society, especially older people. The three methods were by internet, by post or at local authority offices.

A decision was taken not to use local post offices, which would have been the handiest payment points for many people. When it was realised there was a low uptake, an information leaflet was prepared but it did not reach every household.

What happens if you don't pay?The Government has insisted that there will be no change to the rules. That means that those who fail to pay by midnight on Saturday will begin to pay fines and interest.

The fine for the first six months is 10 per cent of the fee plus 1 per cent interest a month – €116 would be paid if the payment is made after six months. After six months, the fines will go up to 20 per cent.

What effect has it had on Phil Hogan?It has back-footed the Minister and has the potential for serious embarrassment.

As of last night, some 500,000 households had registered – only a third of the total number of households.

There are still three days to go, including Saturday. To maximise the numbers, all local authorities have been told to open their offices on Saturday to receive payments.

The figures would need to be in excess of one million for the Government to begin to call it a qualified success.