Warning for owners over household charge

The Government has warned some 280,000 property owners who have yet to pay the household charge that their liability will jump to €200 from €145 if they do not pay by the end of this month.

This €55 increase in the late payment penalty comes on foot of moves to add any outstanding household charge liabilities to the local property tax liability. The penalty levied on top of the €100 charge was increased to €45 at the start of this month from €44 in May.

Defaulters also face the prospect of scrutiny by the Revenue Commissioners, who are set to take over collection of the household charge next month after the introduction of the local property tax.

"I appeal to any householders who haven't paid to do so as soon as possible and avoid any additional late payment fees," said Minister for the Environment Phil Hogan.

Rush to pay
Figures from the department suggest the deadline last week for property tax registrations prompted a rush of household charge registrations by owners who failed to pay it last year.

These included the registration of more than 100 properties by one individual owner, leaving the person with a bill in excess of €14,500 for the household charge alone.

The department has also noted evidence of official receivers registering between 10 and 12 properties as they regularise those financial positions.

While it recorded 23,365 household charge registrations in April, the number rose sharply to 57,604 in May.

This brought the total to 1.26 million, markedly above the level when the charge first fell due last year but well behind the 1.54 million who had registered for the local property tax with the Revenue when the deadline elapsed last Wednesday.

Revenue sent out 1.66 million letters to a list of property owners compiled from its own records. The extent to which the 120,000 shortfall in registrations can be attributed to evasion by objectors or to flaws in the Revenue’s database remains unclear.

“In the last few years Irish people have had a tough time of it and, in spite of that, more than 1.2 million people paid the household charge,” said Mr Hogan. “They have complied with the law . . . I would like to thank them for this.”

The latest figures suggest the State stands to receive €40.6 million if the 280,000 owners register this month, with €56 million outstanding if none of them register before the €100 penalty kicks in.

The effect of the changes looming next month is that household charge arrears will be converted into a local property tax liability for collection by the Revenue. An annual interest charge of 8 per cent applies to late payments of the property tax.

The Revenue has reserved the right to deduct the tax from the salaries, pensions or bank accounts from July if owners do not register.

The recipients of other Government payments also face mandatory deductions and self-employed evaders or companies will have to pay a late filing surcharge on income tax or corporation tax returns.

The household charge was a once-off interim fee levied in respect of 2012 because of the time required to introduce a self-assessed property tax.