Zakat Expert

What category does Tax come under?

Taxes can be viewed as a deductible liability depending on the timescales involved. 

For example, say you have a tax bill which is due in December 2020 and another in January 2021 and this amounts to £4000. Do you still need to pay Zakat on that? 

In this case, since this liability is known and is due for payment, albeit the deadlines being in 5-6 months, it is permissible for you to deduct this amount from your other assets before you calculate your Zakat. The safer thing to do is to include this money in your calculation, especially if you don’t feel that paying Zakat on it will in any way delay or impede you in clearing the liability when the time comes. But as mentioned deduction would be permitted in this case for as long as you were not also requesting (or intending to) a payment extension payment from HMRC. Again, it all comes down to the individual’s intentions and conscience – be honest with yourself! Allah knows. Alhamdullilah! 

Approved by Mufti Amjad 8th August 2023.

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