Business Zakat generally concerns assets held for trade, eligible cash and recoverable receivables, less permitted liabilities. Premises and equipment used to run the business are usually treated differently from goods held for resale. Apply your ownership share and avoid duplicating business assets in your personal calculation.
Work from the assets, not turnover or profit
Annual sales and accounting profit are not the same as net eligible wealth on a Zakat date. A business can have a small profit and substantial stock or cash; it can also have high turnover but modest assets. Start with a dated balance sheet and the supporting bank, stock and debtor records.
Identify your ownership: a sole trader, partnership share and company investment require different treatment. Do not enter the entire assets of a company if you only own a small share, or count both a company’s stock and the full value of your shares without an appropriate method.
Value goods held for sale
Assess saleable inventory at an appropriate current trade value for the method you follow. Historical cost is not automatically the correct value. Document damaged stock, obsolete items and recoverability instead of treating all inventory as identical. Ask a scholar and an accountant about complex manufacturing or valuation questions.
Operating machinery, desks, delivery vehicles and premises used in the business are generally not trade inventory. The same type of item can be treated differently if the business acquired it specifically for resale.
Build the worksheet
Assume qualifying cash £6,000 + saleable stock £9,000 + recoverable trade debts £3,000 − permitted unpaid liabilities £2,000. Net eligible business assets are £16,000.
For a sole owner, the attributable Zakat would be £400 if the relevant conditions apply. An ownership share, doubtful receivables or a different supported stock valuation may change the calculation.
Reconcile business and personal records
Business cash already included here should not appear again as personal savings. A payment made to settle a supplier before the valuation date has already reduced cash. It cannot also remain as an unpaid deduction. Keep personal-use assets and business assets in separate columns, then add eligible amounts once.
Sources & calculation method
Sources checked on 8 September 2026. External organisations publish their own guidance; a citation does not imply their endorsement of this website.
This is educational guidance. We identify differences where relevant and do not claim a named scholarly review. For a personal ruling, consult a qualified scholar familiar with your circumstances. Our editorial policy.