Zakat for Business

No, Zakat is not due on business equipment such as computers, office furniture, machines, delivery vans, or factory tools. These are considered fixed assets, used for running the business and not held for sale. Islamic scholars agree that these are exempt from Zakat because their purpose is not to generate wealth directly, but to facilitate business operations.

However, any profits earned through the use of this equipment—such as cash in the business account, receivables, or inventory purchased with income—are subject to Zakat. So while you don’t pay Zakat on a delivery van, the earnings from deliveries that accumulate in your business account must be included in your zakatable wealth.

If you later sell your equipment and the cash from the sale remains in your account for a year and exceeds the nisab, then Zakat becomes due on that cash.

At Global Helping Hands, we guide business owners through clear Zakat assessments so they can meet their obligations without confusion. Your contribution helps support those who don’t have any tools, equipment, or business—just daily struggles for food, rent, or medical care.

Yes, Zakat is due on all inventory or stock held for the purpose of sale. This applies to retailers, wholesalers, manufacturers, and e-commerce businesses. If you buy and sell items for profit—whether clothing, electronics, or food—then your entire inventory must be assessed at its current market value on your Zakat date.

The correct value is the retail price you would sell it for, not the price you paid. This includes stock in storage, in transit, or on display. Even unsold or slow-moving stock must be included if it is part of your business inventory.

You do not pay Zakat on stock meant for internal use (e.g. office supplies) or defective items that hold no market value.

To calculate:

1. Create a full stock valuation at current retail value.

2. Add to your business cash and receivables.

3. Subtract short-term business debts or unpaid bills.

4. If what remains is above the nisab, pay 2.5%.

At Global Helping Hands, we understand how this impacts small and large businesses. Zakat on your stock can help struggling families get through winter, feed their children, or escape poverty. It's a powerful way to purify your wealth and uplift others.

In a business partnership, each partner is responsible for their own share of the zakatable assets. Zakat is not calculated on the business as a whole, but rather on the individual ownership stakes. Each partner must assess their portion of cash, inventory, and receivables, and pay Zakat if their share exceeds the nisab.

For example, in a 50/50 partnership, one partner would calculate Zakat on 50% of the business’s zakatable assets. The process includes:

• Determining the value of the assets on the Zakat date.

• Calculating the partner’s percentage.

• Subtracting any debts or obligations owed by the partner.

• Paying 2.5% of the resulting amount.

If one partner qualifies and the other does not (e.g. has total assets below nisab), only the eligible partner is required to pay.

The business itself doesn’t pay Zakat unless it is a separate legal entity and the shareholders agree to pay from company funds. Otherwise, it remains a personal obligation on each owner.

At Global Helping Hands, we help partners fulfil their religious duty in a way that’s fair and clear. Your Zakat can empower families who have no business, no partnership, and no income—just a need for hope and help.

If you owe money in your business—such as supplier payments, salaries, or short-term loans—you may deduct these debts before calculating your Zakat. Only immediate liabilities that are due within the year can be deducted. Long-term debts or future instalments are not deductible unless they’re due now.

For example, if you have:

• £20,000 in business cash

• £10,000 in inventory

• £5,000 in unpaid supplier bills

You can subtract the £5,000 and pay Zakat on the remaining £25,000 (if above nisab). However, if you have a long-term business loan of £50,000 and only £10,000 is due this year, only that £10,000 can be deducted.

Avoid inflating debts or deducting projected costs—Zakat is a trust, and its calculation must reflect actual obligations, not estimates.

At Global Helping Hands, we support business owners with honest, transparent Zakat assessments. Your accurate donation brings real help to displaced families, jobless individuals, and orphans across the Muslim world.

Even if you reinvest all profits back into your business, Zakat is still due on the zakatable assets those profits become—such as increased inventory, savings, or receivables. Zakat is not about whether you keep or spend profits—it’s about what you own on your Zakat date.

If your reinvestment purchases stock, equipment, or raw materials, each component must be assessed:

• Stock and inventory are zakatable

• Business equipment is not

• Cash and bank balances are zakatable

• Receivables are zakatable if likely to be paid

For example, if your profit allows you to double your inventory, that increased stock will be included in your next Zakat calculation.

Some businesses avoid calculating Zakat because everything is "reinvested", but this is incorrect. Zakat helps purify your wealth—even reinvested wealth—and serves as a reminder that the ultimate return is from Allah, not the market.

At Global Helping Hands, we help you calculate Zakat correctly, even in reinvestment scenarios. By purifying your business gains, you allow others to simply survive. Your support brings bread, medicine, and relief to those without any investment—just need.

Yes, Zakat is due on any balance in your company’s current or savings accounts, as long as the funds are considered zakatable and belong to you as the business owner or partner. If the business is privately owned or a partnership, the money in the company bank account is treated like any other zakatable asset—just like cash in your personal account.

On your Zakat date, assess the total balance in all business accounts. Add this to other zakatable assets like inventory and receivables. Then subtract short-term business liabilities. If the remaining amount exceeds the nisab, pay 2.5% Zakat.

If your company is a limited entity with multiple shareholders and retains earnings in its own accounts, Zakat may instead be calculated on your share of the company’s zakatable assets, not the total account balance. In such cases, review the company’s financial statements to determine your proportional obligation.

It's important to ensure that the money is actually available and not earmarked for expenses or payroll. Only free and accessible balances are zakatable.

At Global Helping Hands, we support business owners in reviewing their accounts and calculating Zakat fairly. By donating from your business cash, you help other families who don’t even have a bank account—only urgent needs and no income.

Even if your business incurs a financial loss, you may still be required to pay Zakat if your net zakatable assets on your due date are above the nisab threshold. Zakat is not based on profit or loss—it’s based on ownership of specific assets.

For example, if your business lost money this year, but you still have:

• £10,000 in stock

• £5,000 in your business account

• £3,000 owed to you by clients

You would assess these assets, subtract any due debts, and if the remainder is above nisab, you owe 2.5%.

Losses reduce your capital, but they don’t cancel your Zakat obligation if zakatable wealth remains. Only if your total remaining assets fall below the nisab are you exempt.

Some owners confuse business performance with Zakat. Profit affects income tax, but Zakat is an act of worship that measures wealth. Even in difficult years, it can be a test of sincerity and a way to attract barakah (blessing).

At Global Helping Hands, we encourage consistent Zakat giving even during low-profit periods. Your donation supports businesses destroyed by conflict, mothers trying to sell bread to feed their children, and orphans with no source of help.

Yes, service-based businesses—like consultancy firms, salons, delivery services, or digital marketing agencies—must pay Zakat if they possess zakatable assets exceeding the nisab. While these businesses may not hold inventory, they often have:

• Business cash or savings

• Client receivables

• Equipment income (not the equipment itself)

You do not pay Zakat on the value of tools or equipment used to provide services (e.g. laptops, barber tools, software licenses). But if you have significant earnings stored in your business account or are owed money by clients, those amounts are included in your Zakat calculation.

For example, if your business has £7,000 in the bank and £3,000 in client invoices due, that’s £10,000 in zakatable wealth. If this is above the nisab, you pay 2.5% Zakat.

If clients are late in paying, assess whether their debts are collectible. You only include receivables you expect to receive. Debts that are long overdue or disputed can be excluded until recovered.

At Global Helping Hands, we guide service professionals—freelancers, contractors, and small businesses—through responsible Zakat planning. Your Zakat gives vital support to women running micro-businesses with no bank, no salary, just determination.

You can pay Zakat from company funds if:

• You own the company or are authorised by the other partners/shareholders

• The payment reflects zakatable assets held by the business

• The Zakat is calculated accurately and declared clearly

Zakat is an individual obligation, not a corporate one. If the company is a sole proprietorship or partnership, you (and your partners) must assess your share of zakatable assets and pay accordingly. You may use company funds if agreed, but you remain responsible for the obligation.

For a limited company, things are more complex. A company does not pay Zakat like a legal body, but shareholders assess their personal shares in the company’s zakatable assets. If the directors decide to pay Zakat from company profits before dividends are paid, that must be done with the clear intention and approval of the shareholders.

You should also separate business expenses from Zakat payments and document all transactions clearly.

At Global Helping Hands, we can issue corporate Zakat receipts and help business owners fulfil their duty responsibly. Your company’s Zakat can change lives—from supporting orphans in Pakistan to rebuilding homes in Gaza.

Yes, unpaid invoices are zakatable if you expect to be paid. They are considered receivables, meaning money owed to you by customers or clients. If the client is reliable and the payment is due soon, you must include it in your Zakat calculation.

For example, if you’ve invoiced £4,000 and expect it to be paid within a month, it counts as part of your zakatable wealth. However, if the invoice is long overdue or the client is unresponsive, you may delay Zakat until the money is received.

Once a doubtful debt is paid, you should pay Zakat retroactively for each year it was owed to you. Estimate the missed years and pay accordingly.

To simplify this, many business owners choose to only include reliable receivables and leave out doubtful ones until resolved. This protects their Zakat from error and ensures it reflects reality.

At Global Helping Hands, we help you account for all zakatable business assets fairly—including outstanding invoices. Your Zakat can reach people still waiting for help, just as you wait for payment. Every penny helps someone rebuild.

Freelancers and sole traders must calculate Zakat on their net zakatable assets—just like any business owner. Since their business and personal accounts may overlap, it’s important to assess:

Cash on hand and in bank accounts

Outstanding invoices

Short-term investments

Stock (if any)

Debts owed by clients

Exclude:

Personal-use tools or equipment

Rent, bills, or tax payments due soon

On your Zakat date, total all zakatable assets, subtract due debts or expenses, and pay 2.5% if the remaining amount exceeds the nisab.

Track your invoices carefully. Include those you expect to be paid. For clients who delay or disappear, you can exclude the debt until payment is received, then pay Zakat retrospectively.

As your income may fluctuate, set aside a portion of your earnings each month. This makes Zakat easier to manage. Many freelancers choose to give in instalments, especially when working on irregular contracts.

At Global Helping Hands, we understand the challenges freelancers face. Your Zakat supports those who have no job flexibility, no side income, and no safety net. It allows them to live with dignity.