Q: My zakat is calculated yearly on 16th Sha’ban. This year for example, it was £500. My habit is to split the £500 into 11 monthly payments. My aim is to pay the zakat £500 before the next years Sha’ban. However, sometimes I budget and maybe miss a few months. Thus for example by 16th […]
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Is Zakat liable on invoices not issued yet?
Q: We have annual contracts signed in advance with our customers to provide service support for the year. Invoice is sent out each month. Is zakat liable on the months in advance, even though invoices have not been sent and service not provided yet? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: There is […]
Read more...Do I have to pay zakah on money that I have only had in my possession for 2 months?
Q: Do I have to pay zakāh on money that I have only had in my possession for 2 months? I am a retired government servant and receive a pension. Besides this, the only other source of my income is rent I receive from a house. I live in another house which I own. I […]
Read more...What should a charity do with interest (riba), and income generated from interest, that it receives?
Q: What should a charity do with interest (riba), and income generated from interest, that it receives? Our charity receives Haram Interest from individuals & business. Whilst that is sitting in the charity’s Islamic bank accounts what is the status of the (halal) return generated? Does it have the same restrictions as the Interest capital? […]
Read more...Is the responsibility of Zakāt a strictly individual responsibility or can it be joint say in the case of husbands and wives?
Q: Is the responsibility of Zakāt a strictly individual responsibility or can it be joint say in the case of husbands and wives? Most spouses would have joint finances and liabilities or would treat theirs as such. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakāt is strictly a personal obligation. Even in jointly […]
Read more...Is it permissible to use Zakat to fund qard hasan, microfinance initiatives or invest into waqf projects?
Q: Is it permissible to use Zakat to fund qard hasan, microfinance initiatives or invest into waqf projects? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: It is not permissible to use zakat to fund qard hasan, microfinance initiatives or invest into waqf projects as none of these avenues satisfy the requirement of proprietary transfer […]
Read more...Do I pay zakah on an investment from which I get no return, but whose value rises?
Q: Do I pay zakāh on an investment from which I get no return, but whose value rises? I had about £51,300 on which I paid zakāh this year which left me with about £50,000. I then invested that £50,000 into a company. So now I own 5% percentage of that company. I am not […]
Read more...Do I have to pay zakah on shares held for me by a nominee?
Q: Do I have to pay zakāh on shares held for me by a nominee on trust? For e.g. I purchase shares in my own name via TD Waterhouse who hold legal title on a nominee basis. This means they are shown on the company register as the legal owners of the shares. However they […]
Read more...Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation?
Q: What is the time-period for dispensing Zakat? Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakat should be distributed as soon as possible. If there are procedural delays in the PROPER discharge of zakat which includes proprietary […]
Read more...Can Zakat ul Fitr only be distributed in the form of food?
Q: Is it permissible for Zakat ul Fitr to be given in the form of cash or new clothes, or must it be spent on food? الجواب حامدا ومصليا ومنه الصدق والصواب A: Zakatul Fitr can be given in the form of cash or new clothes and does not have to be spent on food. […]
Read more...Can charities be considered as al-amileen?
Q: Can charities be considered as al-amileen? If so, what percentage of Zakat may be used for administration costs, and what activities may be considered “administration” الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Aamileen, as mentioned in the Holy Qur’an are the state appointed officials who collect zakat on behalf of the ruler who […]
Read more...Does Zakah need to be paid on maternity pay that may need returning?
Q: Does Zakah need to be paid on maternity pay that may need returning if one can’t go back to work and hence has been kept aside? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Once maternity pay is received the recipient becomes owner of the same. As it is not a loan it will […]
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