Declan Murphy & Co Chartered Accountants

𝗧𝗶́𝗿 𝗖𝗵𝗼𝗻𝗮𝗶𝗹𝗹 𝗢𝗽𝗲𝗻 𝟮𝟬𝟮𝟲 𝗦𝗽𝗼𝗻𝘀𝗼𝗿𝗲𝗱 𝗯𝘆 𝗗𝗲𝗰𝗹𝗮𝗻 𝗠𝘂𝗿𝗽𝗵𝘆 & 𝗖𝗼𝗺𝗽𝗮𝗻𝘆

A fantastic weekend of golf with a record 40 competing.

Prize winners as follows:

Portsalon individual competition

Jon O’Hara Memorial Trophy winner - Declan Murphy
2nd Place - John Fitzgerald
3rd Place - Conor McClelland
4th Place - Patrick McGowan
Best Gross - Michael Eastwood
Longest drive - Eugene McKeever
Closest to the pin - Patrick McGowan

Sandy Hills Links Champagne Scramble

1st Place - Maurice Mahon, Jonny Gilliland, John Cunningham and Conor Doherty
2nd Place - Cormac O’Brien, Ciaran Redmond, Jim Hastings and John Fitzgerald
3rd Place - Patrick McGowan, Michael McCormack, John Irvine and Hughie McKinley.

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗱𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝘁𝗮𝘅

Understanding dividend tax is important for anyone who receives income from shares in a company. Dividends are taxed differently from salary, pensions and other forms of income, with their own allowances and tax rates.

For the 2026-27 tax year, individuals do not pay tax on dividend income that falls within their Personal Allowance of £12,570. In addition, there is a separate dividend allowance of £500. Dividend income received above these allowances is generally subject to tax.

The rate of tax payable depends on the individual's overall level of taxable income. For 2026-27, dividends falling within the basic rate band are taxed at 10.75%, those within the higher rate band at 35.75% and those within the additional rate band at 39.35%.

To determine the applicable rate, dividend income is added to other sources of taxable income. As a result, dividends can push an individual into a higher tax band, and different portions of the dividend income may be taxed at different rates.

Where total dividend income is £10,000 or less, an individual may ask HMRC to adjust their tax code so that any tax due is collected through their wages or pension. Alternatively, the income can be reported through a self-assessment tax return. There is normally no requirement to notify HMRC where dividend income is covered entirely by the dividend allowance.

Individuals who receive more than £10,000 in dividends must complete a self-assessment tax return. Those who do not normally file a return must register with HMRC by 5 October following the end of the tax year in which the dividend income was received.

𝗔𝗿𝗲 𝘆𝗼𝘂 𝗮𝗳𝗳𝗲𝗰𝘁𝗲𝗱 𝗯𝘆 𝘁𝗵𝗲 𝗛𝗶𝗴𝗵 𝗜𝗻𝗰𝗼𝗺𝗲 𝗖𝗵𝗶𝗹𝗱 𝗕𝗲𝗻𝗲𝗳𝗶𝘁 𝗖𝗵𝗮𝗿𝗴𝗲?

Families claiming Child Benefit should be aware of the High Income Child Benefit Charge (HICBC), which can apply when one member of the household has a higher income.

The charge applies where an individual has adjusted net income of more than £60,000 in a tax year and either they or their partner receives a Child Benefit payment. The amount payable increases gradually as income rises, with the charge set at 1% of the Child Benefit received for every £200 of income above £60,000.

As a result, the impact of the charge is phased in rather than applying all at once. However, once income reaches £80,000, the charge effectively claws back all of the Child Benefit received, removing the direct financial benefit of the payments.

Eligible taxpayers can elect to have the charge collected through their PAYE tax code rather than completing a self-assessment tax return. This measure is intended to reduce the administrative burden for employees whose only reason for filing a self-assessment tax return is to declare the HICBC.

Although some families choose to stop receiving Child Benefit to avoid the charge, it is often worthwhile to continue making a claim. Registering for Child Benefit can help protect entitlement to National Insurance credits for parents or carers and ensures children are automatically issued with a National Insurance number shortly before their 16th birthday.

Taxpayers with income approaching or exceeding £60,000 should review their position regularly to ensure they are complying with the rules and making the most appropriate choice for their circumstances.

Congratulations Rory McIlroy - 2026 Masters Champion, from Declan Murphy & Company Chartered Accountants, Holywood. ⛳️

𝗛𝗮𝗽𝗽𝘆 𝗦𝗮𝗶𝗻𝘁 𝗣𝗮𝘁𝗿𝗶𝗰𝗸’𝘀 𝗗𝗮𝘆

𝗟𝗮́ 𝗳𝗵𝗲́𝗶𝗹𝗲 𝗣𝗮́𝗱𝗿𝗮𝗶𝗴 𝘀𝗼𝗻𝗮 𝗱𝗮𝗼𝗶𝗯𝗵

𝗠𝘂𝗰𝗸𝗹𝗲 𝗚𝘂𝗶𝗱 𝗦𝘁 𝗣𝗮𝘁𝗿𝗶𝗰𝗸’𝘀 𝗗𝗮𝘆

Wishing all a happy and safe St Patrick’s Day ☘️ From Declan Murphy & Company.

Happy New Year
Áthbhliain faoi mhaise daoibh
Guid New Yeir
from Declan Murphy & Company

Wishing all our clients and friends a peaceful and prosperous 2026

Merry Christmas
Nollaig Shona Daoibh
A Blythe Yuletide
from Declan Murphy & Company

Wishing all our clients and friends a peaceful and prosperous New Year.

𝗔𝘂𝘁𝘂𝗺𝗻 𝗕𝘂𝗱𝗴𝗲𝘁 𝟮𝟬𝟮𝟱 - 𝘀𝗼𝗺𝗲 𝗸𝗲𝘆 𝗽𝗼𝗶𝗻𝘁𝘀 𝗮𝘁 𝗮 𝗴𝗹𝗮𝗻𝗰𝗲

Income tax and national insurance

• Income tax and national insurance thresholds will be frozen for another three years from 2028, continuing a freeze implemented by the previous government. This will bring more people into higher tax bands.

• Reeves admits this decision will “affect working people” but says changes to the tax system will ensure the wealthiest contribute the most.

• Headline rates of income tax, VAT and national insurance will not go up, which Reeves says means Labour has kept its manifesto pledge not to raise taxes on working people.

Property and council tax

• The basic and higher rates of tax on property, dividend and savings income will go up by two percentage points each.

• From April 2028 there will be a high-value council tax surcharge – AKA the “mansion tax” – for properties worth more than £2m, of £2,500 a year, rising to £7,500 for properties worth more than £5m.

Pensions

• From April 2029, there will be a £2,000 cap on the amount that can be put into a pension and shielded from national insurance contributions through salary sacrifice. Contributions above that level will be taxed in the same way as other employee pension contributions.

• Removing tax benefits from salary-sacrifice pension schemes is forecast to raise £4.7bn in extra national insurance contributions, the OBR says.

ISA reform

• From 6 April 2027 the annual ISA cash limit will be set at £12,000, down from £20,000. The government will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home.

Two-child benefit limit

• “The biggest barrier to equal opportunity is child poverty,” says Reeves, as she abolishes the two-child limit for universal credit and tax credit, costing the Treasury £3bn by 2029-30.

National minimum wage

• The minimum wage for 18- to 20-year-olds will go up from £10 to £10.85 an hour from April, while the national living wage will go up from £12.21 to £12.71 an hour.

Business taxes

• There will be an expansion of entrepreneurial investment schemes and there will be a three-year stamp duty holiday on the purchase of shares in companies newly listed in the UK.

• Reeves is also launching a consultation on how to attract more entrepreneurs. “If you build here, Britain will back you,” she says.

• There will be a 40% allowance to allow businesses to write off more of their upfront investment costs.

• There will be permanently lowered business rates for 750,000 retail, hospitality and leisure businesses, paid for higher rates on properties worth more than £500,000, used by “warehouse giants”. There will be £4.3bn of support for properties that receive a large increase in their bill.

• Customs duty will apply to parcels of any value, to stop online retailers undercutting high street retailers on price.

Full budget with supporting and related documents can be found at https://www.gov.uk/government/collections/budget-2025

𝗪𝗵𝗮𝘁 𝗰𝗼𝘂𝗻𝘁𝘀 𝗮𝘀 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝘁𝗶𝗺𝗲 𝗳𝗼𝗿 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝘄𝗮𝗴𝗲 𝗽𝘂𝗿𝗽𝗼𝘀𝗲𝘀?

Employers must ensure they are paying staff at least the National Minimum Wage (NMW) or National Living Wage (NLW). The NMW and the NLW are the minimum legal amounts that employers must pay their workers. The latest NMW and NLW rates took effect on 1 April 2025. The current hourly rate for the NLW is £12.21. For those aged 18 to 20, the NMW is £10.00 per hour. Workers aged 16 to 17 and apprentices are entitled to £7.55 per hour.

The minimum wage is calculated as an hourly rate, but it applies to all eligible workers however they are paid. This means that even if someone is paid an annual salary, and it is paid by the piece or in other ways, they must still calculate their equivalent hourly rate to check whether they are receiving at least the minimum wage.

To do this correctly, it is also important to understand what counts as working time under NMW rules.

According to HMRC guidance, for all types of work, this includes time spent:

at work and required to be working, or on standby near the workplace (but do not include rest breaks that are taken);
not working because of machine breakdown, but kept at the workplace;
waiting to collect goods, meet someone for work or start a job;
travelling in connection with work, including travelling from one work assignment to another;
training or travelling to training;
at work and under certain work-related responsibilities even when workers are allowed to sleep (whether or not a place to sleep is provided).
Working time does not include time spent:

travelling between home and work;
away from work on rest breaks, holidays, sick leave or maternity leave;
on industrial action; and
not working but at the workplace or available for work at or near the workplace during a time when workers are allowed to sleep (and you provide a place to sleep).

𝗕𝘂𝗱𝗴𝗲𝘁 𝗱𝗮𝘁𝗲 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗱

The Chancellor of the Exchequer, Rachel Reeves has confirmed, in a video message, that the next UK Budget will take place on Wednesday, 26 November 2025.

Details of all the Budget announcements will be made on a special section of the GOV.UK website which will be updated following completion of the Chancellor's speech in November.

The Budget will be published alongside the latest forecasts from the Office for Budget Responsibility (OBR). This forecast will be in addition to that published for the Spring Statement and fulfil the obligation for the OBR to produce at least two forecasts in a financial year, as is required by legislation.

The OBR has executive responsibility for producing the official UK economic and fiscal forecasts, evaluating the government's performance against its fiscal targets, assessing the sustainability of and risks to the public finances and scrutinising government tax and welfare spending.