Zakat | Zakat & Sadaqah Charity Trust

ZAKAT IN

QURAN & HADITH

Zakat in Quran

Zakat (obligatory charity) is one of the major religious duties in Islam. Literally, Zakat means to "purify". It refers to the purification of a believers' wealth and soul. Wealth purification denotes the mobilisation of assets for the purpose of financial growth and justified distribution of wealth to the poor. Other Quranic references refer to it as a way of purification of one's sin. Zakat is mentioned 32 times in the Quran.

Zakat (Zakat al-Mal) is a fixed proportion collected from the surplus wealth and earnings of a believer. It is then distributed to prescribed beneficiaries and for the welfare as well as the infrastructure of a society in general. This contribution is made payable by a Muslim once every year. Zakat is paid on the net balance after a Muslim has spent on basic necessities, family expenses, taxes etc. Every Muslim male or female who at the end of the Hijri year is in possession of the equivalent of 85 grams of gold or more in cash or articles of trade, must pay his or her Zakat at the minimum rate of 2.5%.

Zakat has a deep humanitarian and social-political value. This religious act prevents the hoarding of wealth and advocates solidarity with humanity because excessive wealth is distributed amongst those in need. The paying of Zakat also helps purify one's soul and encourages a person to have gratitude towards God's bounties.

According to the Quran, Zakat was decreed for mankind as far back as the time of prophet Abraham (peace be upon him):

"We made them leaders who guide by Our command and We inspired them to work good deeds, to observe the Salat (prayers) and to give the Zakat (charity), they were worshippers of Us." [Quran , 21:73]

Zakat is mentioned 32 times in the Quran. It was first revealed in Surah (chapter) 73:20;

".... and establish regular prayers and give regular charity; and loan to God a beautiful loan. And whatever good ye send forth for your souls, ye shall find it in God's presence, Yea, better and greater in reward and seek ye the grace of God: for God is oft-forgiving, Most Merciful."

In another verse, Allah (God) declares that those who pay Zakat, are included within the Muslim society

"But (even so), if they repent, establish regular prayers, and practice regular charity, they are your brethren in Faith: (thus) do We explain the Signs in detail, for those who understand." [9:11]

Allah says in the Quran:

"They were enjoined only to worship God, sincere in their faith in Him alone - and of upright religion - and to establish the Salat and the Zakat. Such is the upright religion, [98:5]

"Those who lay up treasures of gold and silver and spend them not in the way of God; give them the news of a painful punishment, on the Day when that (wealth) will be heated in hellfire, and their foreheads and their sides and their backs branded therewith: "This is the treasure which you laid up for yourselves! Taste, then, your hoarded treasure!" [9:34-35].

"Let not those who are miserly with what God has given them of His bounty think that this is good for them. Rather, it is bad for them. That which they withhold shall be hung around their necks on the Day of Arising. [3:180]

ZAKAT CALCULATOR

PAY YOUR ZAKAT

1. Do I qualify for Gift Aid?

Gift Aid can apply to donations of any amount made by an individual, large or small – it all adds up! You can Gift Aid your cash, cheque, postal order, direct debit, standing order and bankcard donations. To be eligible for the Gift Aid scheme, you need to be a UK taxpayer. You need to have paid income tax or capital gains tax that is at least equal to the amount that we will be reclaiming, in the year that your gift is received by us. Tax is claimed at the basic rate of tax, which is 20% before tax (25% on the net donation). This means that under Gift Aid for every £1 you give, Zakat & Sadaqah Trust can reclaim at least an additional 25p from HM Revenue & Customs. To make up for the shortfall on gift aid, the government provided an eIf you are unsure whether you are eligible for donating by Gift Aid, or simply want more information, contact the HM Revenue & Customs directly by calling their Gift Aid helpline on 0151 472 6038 or visiting http://www.hmrc.gov.uk/ press "Manage Questions" button.
2. Do I need to make a separate Gift Aid declaration for each tax year?

No, you only need to make a declaration once. Your single declaration will apply to all past donations made in the six years prior to this year and any donations you might make to us in the future. Please do, however, remember to let us know of any changes to your name and address. You can contact us at any time by emailing at infol@zakatsadaqaah.org
3. What if I pay a higher rate of tax?

If you are a higher rate taxpayer we are still only able to claim the basic rate of tax on your donation. However, you are able to reclaim the difference between the amount we reclaim and the 40% you pay yourself through your tax return, or you may choose to donate it back to Zakat & Sadaqah Trust by completing the information on your self assessment form. All you have to do is remember to include details of your charitable gifts on your tax form.
4. Can I withdraw the declaration?

You can cancel the declaration at any time by emailing your full name and address, including your postcode, to info@zakatsadaqah.org
5. Can anyone gift aid their donations?

Anyone can give us permission to claim back the tax paid on their gifts, as long as they are a UK Tax payer and have paid as much tax as we will claim on donations made in the tax year in which they were received. This tax can be from income tax taken from your pay or from income / capital gains tax paid on a private pension or on savings interest.
6. I am a pensioner, do my donations qualify?"

Income from state pensions is unlikely to qualify as you would need to earn above the personal allowance threshold to pay income tax. If this is your only source of income, we would always advise that you check with your tax office before completing a declaration.
7. Is there any extra paperwork for me to complete?

No. We reclaim the tax directly from HM Revenue & Customs (HMRC). Simply tick the box on the donation form to confirm you are a UK taxpayer. That’s all you need to do – although you may wish to keep a record of donations you have made in case you are eligible for further tax relief yourself or to ensure that you are paying enough tax to cover the donations you make to charities under Gift Aid.
8. Does my declaration cover all donations I have ever made to you?

We only have four years in which to claim the tax relief on your donations, so if donations you have made go back further than 4 years, we will only apply the tax relief to donations within the allowed period as set out by HMRC.
9. Do I need to declare anything in my tax return in relation to gifts I have already given?

No. You only need declare gifts made in the current tax year, as although the charity can claim back the tax on donations received up to four years ago, you can only benefit from tax relief on donations made in the current period. Please speak to your tax office or accountant if in any doubt as to your entitlement.
10. I pay tax at a higher rate; can the charity claim back the full amount?

We can only claim back tax at the basic rate (currently 20%* of the gross value of your donation). However, you can request a rebate for the difference on any donations made within the current tax year, when you submit your tax returns and opt to donate this to a charity of your choice.