Zakat Calculator Donation

What is the Meaning of Zakat?

Zakat is one of the Five Pillars of Islam. It is a fundamental part of a believer’s religious obligations. Zakat means purification in the literal sense. It is a means of worshipping Allah (SWT) by giving that which He has enjoined to those who are entitled. Zakat is the act of giving a set percentage of total wealth to the eligible each lunar year and is required of every sane adult Muslim whose accumulated wealth exceeds the current Zakat nisab value.

Paying Zakat is an act of worship. At Your Impact, we understand this wholeheartedly and strive hard to ensure your Zakat payment reaches the most vulnerable and needy communities in the world quickly and effectively.

The rules and regulations surrounding Zakat may seem complicated. It is important to understand the Zakat nisab value, when to pay Zakat, and to whom we can give it. Considering this, Your Impact has put together a brief guide around how to calculate Zakat – including the correct Zakat percentage of wealth to be paid and whether any Zakat tax is applicable in the UK.

What is Nisab?

The Zakat nisab value is the minimum threshold required for an individual to be eligible to pay Zakat in that specific lunar year. Your total overall wealth must meet or exceed the nisab value in order for you to be eligible to pay Zakat.

What is the Nisab Value?

The most up-to-date nisab for gold and silver can be found at the top of the page.

The nisab value is related to the current values of gold and silver and guides us on how much is Zakat. The nisab principles were set in accordance with the teachings of Prophet Muhammad (SAW). The nisab value can be described as 612.36g of silver or 87.48g of gold. Originally, these values of silver and gold were equal, but in the current day and age, they have become different, with the silver nisab being significantly lower than its gold counterpart.

You can calculate the nisab value at any time by converting these weights into your local currency.

Zakat Percentage – How Much Zakat to Pay

Your Zakat donation should amount to 2.5% of your total wealth accumulated over the year. As an example, if your total assets (after any debts owed) amounted to £10,000, then you would be required to pay £250 as Zakat.

What does Zakat apply to?

When calculating your total wealth and assets, you must consider the following:

• The value of gold and silver items owned.
• Money in your bank accounts or cash at home.
• Loans that you have given out.
• Pensions, stocks, shares, and investments.
• Property owned as an investment (excluding the property you live in).
• Farm and agricultural produce.

You can use Your Impact’s Zakat calculator for gold, silver, cash, and other assets to determine your overall wealth and subsequently work out how much Zakat you need to pay. Please note that any debts you currently have outstanding, including any form of a loan, are ineligible for Zakat, so they must be deducted from the overall total.

Zakat Rules on Tax in the UK

In the UK, tax can impact Zakat in a variety of ways, but there are Zakat rules to help if you have any queries.

Personal taxes like road and income tax are not exempt from Zakat. The only exception to this is when the taxes being paid are overdue, in which case they become a deductible debt, though this is a rare situation.

For self-employed people or business owners, filling in UK tax returns is an important part of the business. In this situation, many individuals will keep money in their bank specifically for when they fill in their tax returns. This figure being saved for tax is deductible from the Zakat total.

Who is Eligible to Receive Zakat?

As an obligatory act of worship, your Zakat donation should go towards helping Zakat-eligible individuals, as decreed by the Holy Quran. Zakat payments are divided between those most in need in the light of the Holy Quran:

• The poor
• The needy
• Travellers in need
• Those in debt
• Those being held against their will or in slavery
• New Muslims and friends of the Islamic community
• Those in the cause of Allah.

When to Pay Zakat

Zakat is typically based on a full lunar year, and as such, most Muslims pay this towards the end of the year. While many choose to pay Zakat during Ramadan, Muslim scholars warn against delaying the payment of Zakat. Instead, Zakat should be paid as soon as it becomes obligatory after a whole year has passed since the possession of wealth.

However, Zakat can be given in advance. It is a good idea to pay Zakat in Ramadan to maximise the reward if someone’s Zakat has to become compulsory shortly after Ramadan.

Administrators of Zakat

Your Impact is an international organisation with almost 35 years of experience in assisting some of the most vulnerable people in the world. The majority of our campaigns and appeals are Zakat-eligible. Join hands with Your Impact and let your Zakat donations make a substantial difference to vulnerable lives across the world.