Muslim households in Britain tend to give from several pots at once. There is zakat at Ramadan, a monthly donation, something marking a newborn, and a few pounds of bank interest that nobody quite knows what to do with. Each payment has its own rule on timing, amount and recipient, and mixing them up is common.

The sections below take them one at a time and finish with a simple yearly calendar.

Zakat, the fixed obligation

Zakat is 2.5% of qualifying wealth held above the nisab for a lunar year, paid to the eight categories of recipient named in the Quran. Delaying it leaves a debt unpaid, so treat it as a deadline. Many people pay in Ramadan for the added reward, though the date is your choice.

Sadaqah, the voluntary gift

Sadaqah has no minimum, no deadline and no fixed list of recipients. A coin in a collection tin counts, and so does a monthly direct debit, and so does an hour spent helping a neighbour with shopping.

Setting a small daily amount works well for everyday sadaqah, because it turns giving into a habit that survives a busy week.

Lillah, a gift for Allah's sake alone

Lillah carries no condition on how the money is used and no expectation of thanks. Charities often direct it to wherever the need is greatest, which suits donors who trust the organisation's judgement. You can give lillah through United Muslims without naming a project.

Interest on UK bank accounts (riba)

Most UK savings accounts and many current accounts pay interest, and many Muslims do not keep it. The usual guidance is to give the amount away to people in need, without counting it as zakat or sadaqah and without expecting reward. Most scholars also say it should not pay your own tax bill or bring you any benefit.

Your bank can provide a summary of the interest paid each tax year, which ends on 5 April. Add up the figure across every account, including cash ISAs, then give that total away. The page on what to do with interest (riba) on UK savings explains how the donation works.

Aqiqah, marking a birth

Aqiqah is a sacrifice made to thank Allah for a child, traditionally on the seventh day after birth. Many scholars say two animals for a boy and one for a girl, with the meat shared among family, neighbours and people in need. Scholars also allow it later if the seventh day passes.

Home slaughter is not practical for most UK families, so many choose to arrange an aqiqah through a charity that carries it out and distributes the meat.

Who can receive each payment

Zakat cannot go to your own parents, grandparents, children or spouse, because you are already responsible for their support. Sadaqah has no such limit, and the Prophet taught that sadaqah given to a relative carries two rewards, one for the charity and one for keeping family ties.

Interest money is usually given to people in need and not to relatives you support.

Other payments you will meet

•       Fitrana (zakat al-fitr): a set amount per person, paid before the Eid al-Fitr prayer.

•       Fidya: feeding a person in need for each fast you cannot make up.

•       Kaffarah: a penalty for a deliberately broken fast or a broken oath.

•       Qurbani: the Eid al-Adha sacrifice for those who meet the nisab.

A simple yearly rhythm

•       Before Ramadan: value your wealth on one chosen date and work out your zakat.

•       During Ramadan: pay zakat and fitrana, and keep a daily sadaqah going.

•       Dhul Hijjah: give Qurbani if it is due on you.

•       Early April: the UK tax year closes on 5 April, so total your bank interest and give it away.

•       Whenever a baby is born: arrange aqiqah.

Keeping each of these in its own line of the household budget removes most of the confusion.

Written by the team at United Muslims, a charity registered in England and Wales (no. 1207550) serving Muslim communities in the UK, the USA and overseas.