Zakat – Simple Guide

Zakat is typically calculated as 2.5% of this net figure, provided it stays above a minimum threshold called the Nisab for one full lunar year.

Nisab is the minimum amount of wealth a person must have before Zakat becomes obligatory. It is usually set at the value of 87.48 grams of gold or 612.36 grams of silver. If your savings remain at or above this amount for one full lunar year, you are required to pay Zakat. In modern times, the Nisab is calculated according to current market prices. This ensures that your Zakat obligation reflects real economic value and remains fair and accessible to all.

Today (12th March 2026), UK Nisab in British Pound is:

87.48 grams of gold – £10,823.03
612.36 grams of silver – £1261.46

*Source:https://www.bullionbypost.co.uk

To calculate your Zakat, follow these three simple steps:

 

1. Calculate Zakatable Assets (What you pay on)
Your Zakat liability is based on assets that have the potential to grow. You must include:

Cash: All cash in hand, in bank accounts (including savings), or digital currency (crypto).

Gold and Silver: Jewellery, coins, or bars (precious stones like diamonds are generally exempt).

Investments: Shares, unit trusts, and the zakatable portion of pension funds.

Business Stock: The wholesale value of inventory or trade goods intended for resale.

Money Owed to You: Only “strong debts” that you are confident will be repaid (e.g., personal loans to reliable friends).

 

2. Deduct Liabilities (What you subtract)
You can subtract money you owe to others from your total assets to find your true zakatable wealth. Common deductible liabilities include:

Short-Term Debts: Personal loans from friends/family, credit card balances, and overdrafts that you intend to pay back imminently.

12 Months of Long-Term Debt: For mortgages, student loans, or large bank loans, scholars generally allow you to deduct up to 12 lunar months of the principal (non-interest) portion of upcoming payments.
Immediate Bills: Rent, utility bills, or council tax that are currently due or will be debited in the same month as your Zakat date.
Outstanding Business Expenses: If you own a business, you can deduct unpaid supplier invoices, employee wages, and rent due immediately.

Overdue Taxes: Personal taxes that are already due or overdue, such as income tax from a previous financial year.

 

3. Key Exclusions (What does NOT count)
You do not pay Zakat on, nor do you deduct the full value of:

Personal Essentials: Your primary home, car, clothing, and household furniture.
Fixed Business Assets: Buildings, machinery, or vehicles used for daily operations (only stock for sale is zakatable).
Future/Interest Payments: You cannot deduct future bills not yet due, nor can you deduct interest (riba) portions of any debt.

 

Simple Formula

Total Zakatable Assets – Deductible Liabilities = Net Zakatable Wealth
Zakat Due = 2.5% of Net Zakatable Wealth

Use our Zakat Calculator>>>

What is Sadaqah Jariyah?

Sadaqah Jariyah is an ongoing charity that continues to benefit people even after the donor has passed away. It is highly valued in Islam as it not only helps those in need but also provides continuous rewards for the giver in the afterlife.

Acts such as building wells, schools, hospitals, or teaching beneficial knowledge are examples of Sadaqah Jariyah.

The Prophet Muhammad (peace be upon him) emphasized its importance by stating that when a person dies, their deeds end except for three things: ongoing charity, beneficial knowledge, and a righteous child who prays for them.

This type of charity creates a lasting impact, helping communities thrive and improving lives for generations to come. Muslims give Sadaqah Jariyah to support the less fortunate while earning spiritual rewards. Contributions can be made in various ways, such as donating to sustainable projects that provide clean water, education, or livelihood opportunities.

Our Ummah Trust will utilize these donations to uplift vulnerable individuals, breaking the cycle of poverty and fostering long-term development.

People often give Sadaqah Jariyah in honor of a deceased loved one, especially during blessed months like Ramadan and Dhul Hijjah, to increase their good deeds without diminishing their own rewards. Ultimately, Sadaqah Jariyah is a powerful act of kindness that continues to multiply its benefits over time.

What is Kaffarah?

Kaffarah is a charitable compensation made by Muslims for intentionally breaking any fasts during the holy month of Ramadan, without a valid reason.

How much is Kaffarah for Ramadan 2025?

To atone for the intentionally broken fast, you must fast continuously for 60 days. However, if you are unable to do that, then you have to feed 60 poor people at a rate of £4 per person. As a result, this amounts to £240 for each missed/intentionally broken fast.

Kaffarah for breaking a promise in Islam

Paying a kaffarah is also necessary for breaking a promise/oath. Therefore, for redemption of a broken oath, you must ask Allah for forgiveness, and pay the amount equivalent to feeding 10 people at a rate of £4 per person.. As a result, this amounts to £40 for each broken promise.

“[Fasting is for] a limited number of days. So whoever among you is ill or on a journey [during them] – then an equal number of days [are to be made up]. And upon those who are able [to fast, but with hardship] – a ransom [as substitute] of feeding a poor person [each day]. And whoever volunteers excess – it is better for him. But to fast is best for you, if you only knew,” (Qur’an, 2:184-5)

What is Fidya?

Fidya is a person who is unable to fast during Ramadan due to reasons such as old age or a chronic illness with no expected recovery. In the Hanafi school, fidya is only paid by a person who is not able to fast in Ramadan, cannot make up for the missed fasts at any other time, and is not expected to ever regain the ability to make up the missed fasts. All three conditions must be fulfilled, otherwise, one does not pay fidya but has to make up the missed fasts.

How much is Fidya for Ramadan 2025?

£4.00 Fidya for each missed fast. This should provide 1 person with 2 meals or 2 people with 1 meal. However, if someone misses all the fasts of Ramadan, they would need to pay £120.

What is Zakat ul Fitr (Sadaqatul Fitr or Fitrana)?

Zakat al Fitr (also known as Fitrana and Sadaqatul Fitr) is a charitable donation of food that must be given before Eid prayer, before the end of the month of Ramadan, for the love of Allah. It is compulsory for every self-supporting adult Muslim who has food in excess of their needs on behalf of themselves and their dependents.

Ibn `Abbas (may Allah be pleased with him) reported:“The Messenger of Allah (peace be upon him) ordained Zakat al Fitr [Fitrana] to purify the fasting person from indecent words or actions, and to provide food for the needy. It is accepted as Zakat for the person who gives it before the Eid prayer; but it is a mere Sadaqah for the one who gives it after the prayer.” [Abu Dawud and Ibn Majah]

The quantity is described by the Prophet (PBUH) as 1 saa’ of food, and 1 saa’ is equivalent to 4 madd. A madd is the amount that can be scooped up when one puts their hands together. If we translate this into a monetary value based on the price of a staple food such as flour or rice, it is approximately £4.00.

How much Zakat ul Fitr (Sadaqatul Fitr or Fitrana)?

Please pay advance or before Eid Salah (Prayer).

£4 per person – Donate Now

Aisha (RA) narrated that the Prophet ﷺ said: “Slaughter two comparable sheep for a male newborn and one sheep for a female.” [Tirmidhi]

When a child is born, it is a sunnah of the Prophet Muhammad (peace be upon him) to sacrifice livestock and divide the meat between friends and relatives, as well as to community members in need. This is called Aqiqah, and it is a virtuous act in Islam.

Sadaqah

£10 will cover the required value of the weight of the child’s hair in silver.

Donate your Aqiqah with Our Ummah Trust

Donate your Aqiqah through Our Ummah Trust to support those in need. Muslims are encouraged to shave a newborn’s head and donate the weight of the hair in silver to help vulnerable families. While Aqiqah is traditionally performed on the seventh day after birth, it can be done later as well.

Our Ummah Trust’s Aqiqah Project provides Aqiqah meat directly to struggling families who often lack access to nutritious meals. In many regions, meat is costly and unaffordable for those in need. By distributing fresh meat packs to widows, children, the elderly, and displaced individuals, the project offers vital relief and brings comfort to those facing hardship.

What is Qurbani?

Qurbani means sacrifice. Every year during the Islamic month of Dhul Hijjah, Muslims around the world slaughter an animal – a goat, sheep, cow or camel – to reflect the Prophet Ibrahim’s willingness to sacrifice his son Ismail, for the sake of God. Donating qurbani is highly recommended according to the majority of scholars and obligatory in the Hanafi Madhab for every Muslim who is financially able to do so. There are also qurbani rules which dictate which animals can be sacrificed, the quality of the life it has led, its health status and guidelines on how the sacrifice must be carried out.

Alhamdulilah, Our Ummah Trust through our trusted partners has undertaken the duty of Qurbani on behalf of our donors since 2015. By donating your qurbani to Our Ummah Trust, you will enable the world’s most vulnerable and disadvantaged communities in 16 countries to enjoy Eid, as this is the only time many families eat meat in the entire year.