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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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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Is it permissible to under declare my income for benefits?

Q: Is it permissible to at least under declare my income just so I can make housing more affordable for myself, since private housing is so expensive in the City? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب It is not permissible to under declare income so as to receive more benefit than one is entitled […]

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Please could you clarify the Islamic permissibility for one to claim income support?

Q:Please could you clarify the Islamic permissibility for one to claim income support?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: The permissibility of being able to claim income support depends on whether the individual fits the eligibility criteria or not.  The eligibility criteria can be seen at the following link: https://www.gov.uk/income-support/eligibility If […]

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Am I allowed to claim tax benefits as I have just been working a cash-in-hand job over the summer?

Q: Am I allowed to claim benefits as I have just been working a cash-in-hand job over the summer?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If the tax regulations allow for you to claim tax benefits then you can claim, otherwise not.  It would be appropriate for you to seek advice from your local […]

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Can interest earned be used to pay tax in a non-Muslim state?

Q: Can interest earned be used to pay tax in a non-Muslim state? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Any interest earned on bank deposits is the property of others and one is duty-bound to return their property to them. However, as they are not known and thus it is not possible to […]

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Is my husband entitled to a share of the child benefits and tax credits, and anything purchased from them during my lifetime and after my death?

Q: Is my husband entitled to a share of the child benefits and tax credits, and anything purchased from them during my lifetime and after my death? I am in the process of making a Shariah Will. I would like to clarify some matters before finalising the will. I live in the United Kingdom. My […]

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Is zakah necessary on child benefit payments?

Q: Is zakāh necessary on child benefit payments? I wanted to know who is considered the owner of the child benefit given by the government. Is it the child or the mother? I believe that if it is the mother then zakāh will be compulsory. الجواب حامدًا و مصليًا و منه الصدق و الصواب A: […]

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As a higher rate taxpayer – I can reclaim some of my Zakah back from HMRC- How do I treat this?

Q: As a higher rate taxpayer – I can reclaim some of my Zakah back from HMRC – How do I treat this? I am a higher rate taxpayer and would claim gift aid on my zakāh “donation”. If I give £100, the charity will be able to claim another £28 or so. Fine. My […]

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