Call our Insolvency Law Helpline on:


LEXLAW, 4 Middle Temple Lane, London

Halal Monitoring Committee ‘was left with six figure bill’

May 25 2012

The Halal Monitoring Committee (HMC) is in the process of being dissolved after it was served with a winding-up petition by HMRC. However, the organisation says it is set to continue its ‘invaluable work’ for the Muslim community. The order has been forced upon the charity after ‘cash flow’ problems and confusion over the payment of Value Added Tax (VAT).

It is believed the winding-up order relates to a six figure VAT bill. In a statement on their website HMRC said “In September 2011, HMC registered for VAT as agreed with the HMRC. Previous to this, HMC believed it was exempt from VAT due to the nature of its work and charity status”. In early 2012, HMRC informed HMC that it should re-bill all its pre-existing customers for VAT dating back from 2005 and make payments due.

The majority of pre-existing customers would be able to re-claim VAT from HMRC but could not pay due to cash flow issues. This requirement by HMRC caused HMC to have significant cash flow problems that could not be reconciled and settled with HMRC.

Our Insolvency Solicitors & Barristers are able to give you specialist legal advice. Just click here to complete our online contact form or for a free initial telephone consultation with a qualified winding up lawyer call 0845 8622 529.

The articles published on this website, current at the date of posting, are for reference purposes only and do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.

Call us on ☎ 02071830529 or email us on for more information about the specialist insolvency legal services we provide. Our team of London lawyers are based in Middle Temple adjacent to the Companies Court. We are committed to providing professional and specialist legal advice and are leading experts in cases involving winding-up petitions.