Q: I had a question pertaining to taxes with reference to an earlier fatwa published on your website: https://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 […]
Read more...Category: Tax, Benefits, Fraud, and Copyright Fatawa
Is a HMRC tax deposit Zakatable?
Q: I have a question regarding the calculation of my zakat liability. My money has been deposited with HMRC to pay for outstanding tax liabilities. In theory I could still withdraw that money before 2019, but in this case interest would accrue and I would have to pay it all back in 2019 regardless. The […]
Read more...Should I make up for my previous under declared taxes?
Q: A brother estimates 3 years of under declared taxes and has no cash or funds or Job to be able to make up the missed payment. He also has some unsecured debt which he is unable to pay. He owns a house however his wife and children live in this. Essentially he does not […]
Read more...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 […]
Read more...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 […]
Read more...Is the diability benefits I receive for my son solely his money?
Q: I am in receipt of income support and carers allowance for the care of my son who is disabled and I recieve his disability allowance on his behalf because he is illiterate. Is the income support which is paid in to my bank account regarded as my income and not my husband’s income? Is […]
Read more...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? […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...How can I make up for being dishonest with insurance companies?
Q: I have been dishonest when it comes to car insurance for e.g. by claiming on someone else’s, falsifying mileage and driving without insurance. How can I rectify these mistakes? I used my dad’s break down cover on my car which covers, the cover holder on multiple cars, with my dad’s permission, to get my […]
Read more...Is it permissible to use copyrighted materials for business use?
Q: Is it permissible to use copyrighted materials for business use? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The issue of copyright is a disputed issue amongst Muslim scholars. Some scholars accept the concept arguing that there is no express provision in the Holy Qur’an and Sunnah that restricts ownership to tangible property. Others scholars […]
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