The label – also home to international artists such as Armand Van Helden and Mondo Grosso - is scheduled to appear at the Royal Courts of Justice on Monday after a winding up petition, but directors at the label claim HMRC wrongly calculated the group’s liability.
Speaking exclusively to Insolvency Today, Stephen Flannery manager of the company's finance and business affairs, said a payment would be made today (Friday 23 September).
He said: “It’s VAT really, but between what they (HMRC) are looking for and what we estimate, there is a big difference. They came down ages ago, probably two years ago and had written a kind of assessment. They kept chasing that up every now and again and there have been payments to them ongoing.
“Whereas I was writing to them thinking it was getting dealt with, they have suddenly called in the attack dogs and we are in a position where we are going to have to deal with this and pay what they are looking for.
“We are reluctant to keep paying that because they don’t seem to want to agree with what we’ve paid.”
Flannery said the company now intends to file a retrospective claim for what it believes to be the right amount set against what they company has actually paid.
Fatboy Slim – real name Norman Quentin Cook – founded Southern Fried Records in 1994 to publish material that major labels refused.
It has also enjoyed commercial success with a number of singles such as the Mighty Dub Katz’s ‘Magic Carpet Ride’ and Scanty Sandwich’s ‘Because of You’ which sampled Michael Jackson’s 'Shoo be doo be doo da day'