Clare County Council has published a question and answer guide to the Household Charge.
All owners of residential property in Ireland are liable for the household charge on each residential property they own, as at 1st January 2012. This includes those properties that are liable for the €200 charge on Non-Principal Private Residences (NPPR). Owners of Irish residential properties who live outside Ireland are also required to register for and pay the household charge.
Householders have until the 31st March to pay the €100 charge, after which financial penalties apply on an increasing basis each month.
Caroline O’Connor, a Chartered Accountant in the Finance Department of Clare County Council, answers some of the most commonly asked questions about the Household Charge.
What is the household charge?
The Household Charge is an annual charge introduced by the Local Government (Household Charge) Act 2011 / Local Government (Household charge) Regulations 2012, which is payable by owners of residential property. It is a matter for owners of residential property in County Clare to register and pay the household charge before March 31st 2012.
How much is the charge?
The Household Charge is €100 per residential property
Who is collecting the Charge?
The Household Charge is being collected centrally by the Local Government Management Agency (LGMA) on a shared service basis on behalf of 34 City and County Councils across Ireland, including Clare Local Authorities. The recommended option for payment is www.householdcharge.ie, however, payment can also be made at your local authority.
What will the Household Charge finance?
Revenues from the household charge will be forwarded to the Exchequer, and will be later distributed to Local Authorities throughout Ireland to support the provision of local services. Internationally, local services are administered by local authorities and financed by local service charges. In Ireland, local authorities are responsible for, among other services, public parks; libraries; open spaces and leisure amenities; planning and development; fire and emergency services; maintenance and cleaning of streets and street lighting.
When does a property owner become liable to pay the household charge?
This date, which is called the "liability date", is the 1st of January. The charge must be paid within three months (31st March) of the liability date in order to avoid late payment penalties. Closing date for payment without incurring penalties is the 31st of March, 2012, payment can be made on www.householdcharge.ie or at any local authority.
Will residential property owners receive a Bill or Invoice for the Household Charge?
No, the Household Charge is self-declaration, therefore, the onus is on all property owners to register and pay for their properties themselves.
Is there a penalty for not paying or making a late payment?
Yes there is, the closing date for payment of the Household Charge is the 31st of March, 2012, if payment is made after this date significant penalties will apply over time.
What if owners of residential properties do not to pay the Household Charge?
The Household Charge is a Charge against your property. This charge will remain against your property and must be paid in the event of transfer of ownership in the future. If you don’t pay you will have the annual charge plus penalties plus interest to pay in the future. These penalties continue to accumulate as a Charge against the property and in the event of selling the property or indeed transfer ownership to a family relative in due course, the Household Charge will then have to be paid and would have a considerable cost if it remains outstanding for a number of years.
What types of properties are liable for the household charge?
Owners of residential property on the liability date of 1st of January 2012, subject to a limited number of exemptions and waivers (set out below), are liable to pay the household charge by 31st of March 2012.
How can home owners pay the Household Charge?
The charge can be paid online or by post. Online payments may be made by credit card/debit card or by Direct Debit at www.householdcharge.ie. Registration forms are available; from Local Libraries, Clare County Council offices, Clare Citizen Information Centres, or Lo Call 1890 357357. Payment can be submitted by cheque, postal order or bank draft and should be made payable to “Household Charge” and addressed to: Household Charge, P.O Box 12168, Dublin 1. Registration Forms are also available and payment can be made at Clare County Council, New Road, Ennis, Co. Clare.
What details do householders require to register and pay the charge?
You will be required to complete a statutory declaration which will require the name of the owner of the residential property (in the case of multi-owners only one name is required), address for correspondence, address of the residential property for which payment is being made, personal public service number (PPSN), tax reference number of the owner where the owner is a company, and payment details - credit/debit card.
Does the household charge apply to those who are paying the €200 charge on Non-Principal Private Residences?
Yes. The household charge applies to residential property generally, including those properties that are liable to the €200 charge on Non-Principal Private Residences. The liability date for the NPPR Charge is the 31st of March each year and payment can be made from that date until the 30th of June without incurring penalties, see www.nppr.ie for payment and other information.
Can property owners pay for the Household Charge and NPPR Charge together?
The Household Charge and NPPR Charge are two separate charges and must be registered for and paid separately.
Are individuals who live abroad but own a property in Ireland liable for the Household Charge?
Yes, the Household Charge applies to all properties within the Irish State, regardless of where the owner lives.
Does the charge apply to residential property outside of Ireland?
No. The charge only applies to residential properties situated in the State.
Who is liable to pay the charge where a property is jointly owned?
Liability falls on all co-owners but payment by any one co-owner discharges the liability of all co-owners.
Is a building divided into flats or bedsits liable for the household charge?
Yes. The household charge is payable by the owner of the building in respect of each unit of residential accommodation. Where a building is divided into a number of flats or bedsits, the charge applies to each flat or bedsit. For example, if the dwelling is divided into four bedsits, four household charges of €100 each are payable.
Is a house let as one unit to a number of occupants liable for the household charge?
All owners of residential property in Ireland are liable for the household charge on each residential property they own, as at 1st January 2012. This includes those properties that are liable for the €200 charge on Non-Principal Private Residences (NPPR). Owners of Irish residential properties who live outside Ireland are also required to register for and pay the household charge.
Householders have until the 31st March to pay the €100 charge, after which financial penalties apply on an increasing basis each month.
Caroline O’Connor, a Chartered Accountant in the Finance Department of Clare County Council, answers some of the most commonly asked questions about the Household Charge.
What is the household charge?
The Household Charge is an annual charge introduced by the Local Government (Household Charge) Act 2011 / Local Government (Household charge) Regulations 2012, which is payable by owners of residential property. It is a matter for owners of residential property in County Clare to register and pay the household charge before March 31st 2012.
How much is the charge?
The Household Charge is €100 per residential property
Who is collecting the Charge?
The Household Charge is being collected centrally by the Local Government Management Agency (LGMA) on a shared service basis on behalf of 34 City and County Councils across Ireland, including Clare Local Authorities. The recommended option for payment is www.householdcharge.ie, however, payment can also be made at your local authority.
What will the Household Charge finance?
Revenues from the household charge will be forwarded to the Exchequer, and will be later distributed to Local Authorities throughout Ireland to support the provision of local services. Internationally, local services are administered by local authorities and financed by local service charges. In Ireland, local authorities are responsible for, among other services, public parks; libraries; open spaces and leisure amenities; planning and development; fire and emergency services; maintenance and cleaning of streets and street lighting.
When does a property owner become liable to pay the household charge?
This date, which is called the "liability date", is the 1st of January. The charge must be paid within three months (31st March) of the liability date in order to avoid late payment penalties. Closing date for payment without incurring penalties is the 31st of March, 2012, payment can be made on www.householdcharge.ie or at any local authority.
Will residential property owners receive a Bill or Invoice for the Household Charge?
No, the Household Charge is self-declaration, therefore, the onus is on all property owners to register and pay for their properties themselves.
Is there a penalty for not paying or making a late payment?
Yes there is, the closing date for payment of the Household Charge is the 31st of March, 2012, if payment is made after this date significant penalties will apply over time.
What if owners of residential properties do not to pay the Household Charge?
The Household Charge is a Charge against your property. This charge will remain against your property and must be paid in the event of transfer of ownership in the future. If you don’t pay you will have the annual charge plus penalties plus interest to pay in the future. These penalties continue to accumulate as a Charge against the property and in the event of selling the property or indeed transfer ownership to a family relative in due course, the Household Charge will then have to be paid and would have a considerable cost if it remains outstanding for a number of years.
What types of properties are liable for the household charge?
Owners of residential property on the liability date of 1st of January 2012, subject to a limited number of exemptions and waivers (set out below), are liable to pay the household charge by 31st of March 2012.
How can home owners pay the Household Charge?
The charge can be paid online or by post. Online payments may be made by credit card/debit card or by Direct Debit at www.householdcharge.ie. Registration forms are available; from Local Libraries, Clare County Council offices, Clare Citizen Information Centres, or Lo Call 1890 357357. Payment can be submitted by cheque, postal order or bank draft and should be made payable to “Household Charge” and addressed to: Household Charge, P.O Box 12168, Dublin 1. Registration Forms are also available and payment can be made at Clare County Council, New Road, Ennis, Co. Clare.
What details do householders require to register and pay the charge?
You will be required to complete a statutory declaration which will require the name of the owner of the residential property (in the case of multi-owners only one name is required), address for correspondence, address of the residential property for which payment is being made, personal public service number (PPSN), tax reference number of the owner where the owner is a company, and payment details - credit/debit card.
Does the household charge apply to those who are paying the €200 charge on Non-Principal Private Residences?
Yes. The household charge applies to residential property generally, including those properties that are liable to the €200 charge on Non-Principal Private Residences. The liability date for the NPPR Charge is the 31st of March each year and payment can be made from that date until the 30th of June without incurring penalties, see www.nppr.ie for payment and other information.
Can property owners pay for the Household Charge and NPPR Charge together?
The Household Charge and NPPR Charge are two separate charges and must be registered for and paid separately.
Are individuals who live abroad but own a property in Ireland liable for the Household Charge?
Yes, the Household Charge applies to all properties within the Irish State, regardless of where the owner lives.
Does the charge apply to residential property outside of Ireland?
No. The charge only applies to residential properties situated in the State.
Who is liable to pay the charge where a property is jointly owned?
Liability falls on all co-owners but payment by any one co-owner discharges the liability of all co-owners.
Is a building divided into flats or bedsits liable for the household charge?
Yes. The household charge is payable by the owner of the building in respect of each unit of residential accommodation. Where a building is divided into a number of flats or bedsits, the charge applies to each flat or bedsit. For example, if the dwelling is divided into four bedsits, four household charges of €100 each are payable.
Is a house let as one unit to a number of occupants liable for the household charge?
Yes, the charge is €100 for the dwelling.
What is an Unfinished Housing Estate Waiver?
A national survey of unfinished housing developments was carried out in 2011 by officials from the Department of the Environment, Community and Local Government, in conjunction with the Planning Departments of the various local authorities. Unfinished Estates were classified into foru different categories. Only categories 3 and 4 unfinished housing estates qualify for the waiver. A Category 3 unfinished housing estate is where a receiver has not been appointed and the developer is still in place but effectively inactive, while a Category 4 unfinished housing estate relates to a development that has been effectively abandoned and is posing serious problems for residents. The list can be found on the www.householdcharge.ie website.
Is a landlord who rents a property to a person receiving Supplementary Welfare Allowance (SWA) Rent Supplement liable for the household charge in respect of that property?
Yes. Owners of residential properties which are rented to persons receiving SWA Rent Supplement are liable to the household charge.
What are the waivers from payment of the household charge?
The waivers from payment of the household charge include owners of residential property entitled to mortgage interest supplement and owners of residential property located in certain prescribed unfinished housing estates. Persons claiming entitlement to a waiver are required to register their property.
What are the exemptions from liability to pay the household charge?
The exemptions are as follows:
- Residential properties that are part of the trading stock of a business and have not been sold or been the source of any income since construction,
- Residential property vested in a Minister of the Government or the Health Service Executive,
- Residential property vested in a housing authority, including property where households are purchasing their homes under the Shared Ownership Scheme and where the local authority still retains an ownership stake,
- Voluntary and co-operative housing,
- Residential property subject to commercial rates and wholly used as a dwelling,
- Residential property owned by certain charities or comprised in a discretionary trust, and
- Residential property where a person has to leave their house due to long-term mental or physical infirmity (e.g. a person that has moved into a nursing home). "Long term mental or physical infirmity" is defined in the legislation as an infirmity requiring the person to vacate the property in which he/she had been dwelling for a continuous period of more than 12 months and that is certified as such by a registered practitioner.
Do householders need to register their property if it is Exempt?
No, there is no requirement to register a property that is exempt from the Household Charge
Is a property under the Rental Accommodation Scheme exempt from the Household Charge?
There is no exemption granted to those persons who have signed over properties to a local authority under the Rental Accommodation Scheme.
What charities are exempt?
Charities that are exempt from paying the Household Charge include those authorised at 9 January 2012 under the Scheme of Tax Relief for Donations to eligible Charities and other Approved Bodies under the terms of Section 848A Taxes Consolidation Act, 1997. Further information regarding authorised charities is available on the Revenue website, www.revenue.ie.
What is an Unfinished Housing Estate Waiver?
A national survey of unfinished housing developments was carried out in 2011 by officials from the Department of the Environment, Community and Local Government, in conjunction with the Planning Departments of the various local authorities. Unfinished Estates were classified into foru different categories. Only categories 3 and 4 unfinished housing estates qualify for the waiver. A Category 3 unfinished housing estate is where a receiver has not been appointed and the developer is still in place but effectively inactive, while a Category 4 unfinished housing estate relates to a development that has been effectively abandoned and is posing serious problems for residents. The list can be found on the www.householdcharge.ie website.
Is a landlord who rents a property to a person receiving Supplementary Welfare Allowance (SWA) Rent Supplement liable for the household charge in respect of that property?
Yes. Owners of residential properties which are rented to persons receiving SWA Rent Supplement are liable to the household charge.
What are the waivers from payment of the household charge?
The waivers from payment of the household charge include owners of residential property entitled to mortgage interest supplement and owners of residential property located in certain prescribed unfinished housing estates. Persons claiming entitlement to a waiver are required to register their property.
What are the exemptions from liability to pay the household charge?
The exemptions are as follows:
- Residential properties that are part of the trading stock of a business and have not been sold or been the source of any income since construction,
- Residential property vested in a Minister of the Government or the Health Service Executive,
- Residential property vested in a housing authority, including property where households are purchasing their homes under the Shared Ownership Scheme and where the local authority still retains an ownership stake,
- Voluntary and co-operative housing,
- Residential property subject to commercial rates and wholly used as a dwelling,
- Residential property owned by certain charities or comprised in a discretionary trust, and
- Residential property where a person has to leave their house due to long-term mental or physical infirmity (e.g. a person that has moved into a nursing home). "Long term mental or physical infirmity" is defined in the legislation as an infirmity requiring the person to vacate the property in which he/she had been dwelling for a continuous period of more than 12 months and that is certified as such by a registered practitioner.
Do householders need to register their property if it is Exempt?
No, there is no requirement to register a property that is exempt from the Household Charge
Is a property under the Rental Accommodation Scheme exempt from the Household Charge?
There is no exemption granted to those persons who have signed over properties to a local authority under the Rental Accommodation Scheme.
What charities are exempt?
Charities that are exempt from paying the Household Charge include those authorised at 9 January 2012 under the Scheme of Tax Relief for Donations to eligible Charities and other Approved Bodies under the terms of Section 848A Taxes Consolidation Act, 1997. Further information regarding authorised charities is available on the Revenue website, www.revenue.ie.
