Can I deduct my working expenses from my zakatable amount?
June 16, 2016
I work as a contractor which entails working away from home. My monthly costs for travel, hotel accommodation and food are in the region of £1000 per month. My client has recently extended my contract from the end of June 2016 to the end of December 2016. However, there is a standard 1 month notice clause, i.e. if they wish me to finish before the end of December 2016, they have to give me notice of 1 month.
1) Can I deduct these travel / accommodation / subsistence expenses from my zakatable amount?
2) If so, how much can I deduct? Should I assume that I will be with the client for 7 months as per the contract and deduct 7 months worth of expenses from the zakatable amount?
3) Or, should I assume that I can only deduct 1 months worth of expenses since the client could, in theory, give 1 months notice of contract termination?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
A: One may deduct only expenses that have already been incurred by the zakat anniversary. Expenses that will be incurred in the future cannot be deducted. To this end, the length of your employment contract has no bearing on how you calculate your zakat.