Devil resides in detail of property tax

What's going on with the local property tax?
Who knows? Despite almost a week passing since the Revenue Commissioners started sending out letters looking for 2014's property tax, clarity as to who pays what and when is still missing from the public conversation. The chairman of the all-party Oireachtas finance committee Ciarán Lynch has asked the head of Revenue, Josephine Feehily, to come before his committee to discuss the structure, timing and operation of the scheme and has expressed concern about premature payment.

“It is a very simple principle, payment should be made when payment is actually due,” he said yesterday.

When is the payment due?
Well, that all depends. If you pay by monthly direct debit or have it deducted from source, there is one deadline. If you pay in one lump sum, there is another deadline. And if you want to pay using your credit card, debit card or a cheque, there is a different deadline.

What is causing all the trouble?
Two of the seven options are mostly to blame. Those who pay by debit or credit card will have to pay up this month. If you pay by cheque, the tax must be paid on or before January 1st.

Why do some people have to stump up in November?
Anyone paying by credit or debit card who wants to file the tax manually must do so before November 7th, while those who file online have until November 27th.

Revenue says that because of data protection restrictions, it cannot retain credit or debit card details. So if you give the taxman your card details, the tax will have to be deducted on the date the return is filed. Some cheques will also be affected in this way.

What are the other payment methods and their deadlines?
There is a single debit authority which involves filling out a form at the bottom of the property tax return authorising your bank to make a one-off payment for the total amount on March 21st next year. If you opt for the tax to be deducted from your salary or pension, you give your employer's name and tax registration number and the payment is spread evenly over the year starting next January. It can also be deducted at source from the farm scheme payment each month next year.

Also, a direct debit can be set up to pay the tax in 12 monthly instalments starting on January 15th. The tax can also be paid in cash at An Post or at Payzone outlets or Omnivend machines. Payments must be made weekly or monthly, with the taxpayer liable to calculate the payments. The service providers will charge a commission for the service.

What happens now?
The Government will discuss the payments problems at its weekly Cabinet meeting this morning.