Are Muslims allowed to take interest money from the bank and use it to pay their own taxes or insurance premiums?

Q:Are Muslims allowed to take interest money from the bank and use it to pay their own taxes or insurance premiums? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: When needed, one should seek to open an account with an Islamic bank or the Islamic window of a conventional bank or a non-interest […]

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Are Muslims permitted to eat food bought from haram income (such as money falsely claimed in government benefits)?

Q: Are Muslims permitted to eat food bought from ḥarām income (such as money falsely claimed in government benefits)? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: If one receives state benefits fraudulently the amount of excess benefit so received without entitlement must be returned to the state. If the excess benefit is […]

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Is it permissible to under-declare income for a means-tested grant?

Q: I would like to know, if a student applies for a means tested grant, is the money halal, if the parent is required to declare their income in the application and they fail to declare it truthfully.  Is the student blameworthy for applying despite not being able to persuade the parent to declare their […]

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Is it illegal to pay for services in cash?

Q: I had a question pertaining to taxes with reference to an earlier fatwa published on your website: http://alqalam.org.uk/fatawa/can-i-be-held-liable-for-the-tax-evasion-of-my-employers/ In Canada, the Canada Revenue Agency(CRA) warns about what is called the Underground Economy (UE) [http://www.cra-arc.gc.ca/undergroundeconomy/]. In light of thi 1) Is it permissible for Muslims to avail of services where the service provider(such as a […]

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Due to the nature of the IR35 tax legislation, Can I take out insurance cover?

Q: HMRC have made a law against disguised employees in (April 2000) who are operating under a Ltd company. This law is called IR35. The problem is no matter how safe you think you are if case goes to court its just simply your word against theirs. If you represent yourself you will mostly likely lose the […]

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Would it be permissible to benefit from a tax relief whislt donating haram earnings to a charity?

Q: I have about £1000 worth of shares in a bank. I now understand its impermissible to hold such shares, so I was going to sell them and give the money to charity with no expectation of reward. However I’ve learnt from HMRC that if I  gift qualifying shares to a charity there is income tax […]

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Do I have to pay tax on tips received during employment?

Q: Does my husband have to pay tax separately for small tips received during his employment? (For example, an average of £5 cash in hand per day). If it is obligatory to pay tax on this and he refuses to do so what is my extent of my obligation towards getting him to do this? […]

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What are the Islamic rules regarding ownership of Gifts for Inheritance Tax purposes?

Q: In the UK, it is possible through a UK inheritance tax law, known as the 7 year rule for a mother to transfer ownership of a home to her son.   The idea is that when the transfer is made, the individual who gifts the property has to live for 7 years for there to […]

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If I have wrongly claimed Gift Aid, is repentance enough?

Q: If I have wrongly claimed Gift Aid, what is required of me now by sharia in this case?  The transaction is now complete so is not reversible and was processed via a friend. If the charity does end up claiming gift aid, should I pay some money to the government to balance things out? What […]

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