Does household charge cover my second home?

Q&A: I understand the household charge and have paid it on my own home. However, someone told me the other day that I must also pay it on a small property I inherited from my aunt and which I use very occasionally for a weekend break. It is unoccupied apart from this and not rented out. Is this true?

I heard nothing about this in all the talk on the radio and in advertisements and assumed that the €200 second-property charge would cover me. -Ms CH, Dublin

Unfortunately for you it is true – and you had better get moving as the deadline for registering any property that you own in the State and paying the €100 charge has now passed.

The householdcharge.iewebsite states: "The household charge applies to residential property generally, including those properties that are liable to the €200 charge on Non-Principal Private Residences."

As with the nonprincipal private residence charge, if your second or holiday home is a mobile home, you are not liable for the household charge.

The Government has promised it will pursue those who have not registered or paid, but given that it now appears more than half of all properties are not properly registered, a re-evaluation may have to be made.

On the basis of the level of the charge this year and the cost the Government has incurred raising it – advertising costs, the price of keeping offices open and now pursuing those who have not paid – it seems clear the sole purpose of this year’s effort was to generate a database to be used when the more sophisticated property tax comes into force next year, or whenever.

That being the case, it has to be said the Government’s performance has been so inept, you’d almost think they were trying to kibosh the exercise themselves – up to and including playing into the hands of the all- too-predictable United Left Alliance and Sinn Féin.

Having said that, you run the risk of having problems eventually selling any property on which the household charge has not been paid.

In terms of penalties, you will now face a financial cost for late registration and payment. If you register and pay in the next three months, you will face a 10 per cent (ie €10) penalty for late payment, plus interest of 1 per cent per month.

The interest accrues at the same rate further forward but the penalty jumps to 20 per cent after the end of June and 30 per cent from the start of 2013.

My word on the Post Office bond is rock solid

You frightened the life out of us recently. You stated that Post Office bonds were not State- guaranteed like the banks. Having used the three-year and five-year bonds for a long time, we thought we were safe.

I enquired in the post office and was assured you were wrong. Please put us out of our misery.- Mr WB, Dublin

I am somewhat at a loss. I have written on the subject of An Post savings on many occasions over the years, and have no record of stating that they were not covered by a State guarantee. In fact, quite the contrary, I have stated consistently that they are guaranteed by the State. I cannot find the reference that appears to have sparked your concern.

For peace of mind, An Post savings certificates and savings bonds are covered by a full State guarantee. What is true is that this guarantee is not quite the same as the guarantee on bank deposits.

Bank deposits are currently covered by two separate guarantees. The first €100,000 of deposits with any institution

by any one depositor are covered by the Deposit Protection Scheme. This scheme has been in place since long before the financial crisis and is replicated in broadly similar form across the EU.

Separately, we have at present the absolute State guarantee on bank deposits. This has to be renewed with the European Union at regular intervals.

Thus, both An Post and bank savings are covered by guarantees but the nature of those guarantees is slightly different.

Revenue policy clear on taxing State pensions

I was surprised with your answer to Mr JO'B of Kildare re the move to tax State pensions. You state: "Revenue have carefully made no statement, nor are they likely to." Surely they have formulated some policy, and are we not entitled to know what it is? Is it left to every tax inspector in the various PAYE districts to apply whatever policy fits the area or the circumstances, and is an inadvertent error exempt from tax?- Mr JH, Dublin

The policy is straightforward and was stated by Revenue at the outset of this dispute. The Revenue has notified people who have not paid tax due on State pensions that they are liable for it if, taking into account other income, the pension brings them above the tax exemption threshold.

The discretion element is whether, except in cases of blatant “tax dodging”, they will consider it worthwhile to pursue people – especially those inadvertent cases to which you refer.

It was in this context I made the comment quoted.

The Revenue always has this discretion and is answerable to the Comptroller Auditor General for its proper and economic pursuit of tax debt.

This column is a reader service and is not intended to replace professional advice. Please send your questions to QA, c/o Dominic Coyle, The Irish Times, 24-28 Tara Street, Dublin 2, or to dcoyle@irishtimes.com. No personal correspondence will be entered into.