Local property tax (LPT)

Local property tax (LPT) is a tax that property owners in Ireland must pay. Sage 50 Payroll Ireland deducts LPT when Revenue includes the instruction in the employee’s RPN.

What is LPT?

LPT is a yearly tax charged on the market value of residential properties in Ireland. Employees can choose to pay their LPT directly through payroll. When they choose this option, Revenue notifies you in their Revenue Payroll Notification (RPN).

Sage 50 Payroll Ireland sets up the LPT deduction automatically. The deduction has fixed settings, and you can’t edit it at company level.

Revenue decide:

• when you need to start deducting LPT
• how much you need to deduct
• when the instruction stops

You must follow the values that appear in the employee’s RPN. Your employees must pay their full yearly LPT amount by 31 December.

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Who refunds LPT?

It depends on the reason for the refund:

• If the employee disputes their total yearly LPT amount, they must contact Revenue. Revenue handles these refunds directly
• If you deducted LPT in error, you need to refund that amount through payroll

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Related tasks

You can use these articles to complete LPT tasks in Sage 50 Payroll Ireland:

• Retrieve RPNs to import LPT information
• Check imported LPT details
• Deduct LPT in a bonus run
• Fix incorrect LPT setup