The Revenue Commissioners have recently intensified their enforcement activity in relation to Local Property Tax (LPT), signalling a clear shift towards more proactive collection measures. While the legislative powers to enforce LPT compliance have long been in place, there is now a noticeable increase in their application, particularly in cases where taxpayers have failed to file returns or keep payments up to date.

What does this mean for taxpayers?

Revenue now has the authority to recover unpaid LPT liabilities directly at source. This may include:

• Deducting LPT from salary or wages through payroll
• Reducing available tax credits
• Collecting outstanding amounts via pensions or certain State payments

These measures can have an immediate and tangible impact on an individual’s net income and may remove the flexibility previously available to manage payments independently.

Why this matters for employers

For employers, this development may result in an increased volume of payroll notifications requiring the implementation of LPT deductions. As a result, payroll teams may face additional administrative and compliance obligations, including ensuring that deductions are applied accurately and in a timely manner.

Employers should be prepared for these changes and ensure that payroll systems and processes are equipped to handle such instructions efficiently.

What action should be taken?

Taxpayers are strongly advised to take proactive steps to avoid enforced collection measures:

• Ensure all LPT returns are filed correctly
• Put appropriate payment arrangements in place
• Respond promptly to any correspondence from Revenue

Early engagement can help prevent more restrictive collection actions and preserve greater control over payment options.

Contact us:

At Gallagher Keane, we work closely with both employers and individuals to manage LPT obligations effectively. Our team can assist with the implementation of payroll deductions, ensure compliance with Revenue requirements, and support employees in understanding and addressing their LPT liabilities.

Contact our team at Gallagher Keane today if you require assistance or guidance in this area. Email: info@gallagherkeane.ie