Salaam,
I had a question about paying zakat.
I run a LTD company as a contractor.
I am liable to pay zakat on both personal assets (cash in personal bank account, gold, silver, etc), as well as zakat on business assets.
I want to know if it is acceptable to pay the entire zakat liability (including the zakat due on personal assets) from the business bank account - this would provide a tax advantage whereby the zakat payable on personal assets can be paid directly from the business account without the need to extract the money first as a salary or dividend to myself (and thus needing to pay income tax on it first, before paying it as zakat).
Or, does the zakat on personal assets have to be paid from the money in the personal bank account, and the zakat on business assets paid separately from the business bank account.
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Wasalam
May Allah bless you.
Yes you can pay your zakat from the business account including your personal zakat too.
And Allah knows best!
That’s very helpful Mufti Bilal. Thanks for taking the time to respond to my query, JZK.
On business zakaat, would zakaat payable on the pre-tax or post tax cash in bank?
At the moment, the ruling is that it should be payable on the pre tax amount, if the tax liability is not due.
But I believe this matter needs reviewing by British scholars. Hopefully they will one day inshaAllah.
And Allah knows best!
Jzk for the reply mufti.
Business tax in my instance is a fixed % and although not due per say, it will be once tax returns filed. As a business we have earmarked this figure for hmrc and aside not to be spent.
In this instance Would zakaat be on pretax or posttax profits.
Also, can you advise on how best we can get this reviewed by uk mufti for clarity - as you agree this is a question/ that seems not too difficult and can greatly benefit from general consensus.