Readers' forum: No show

I act for a cabaret club in Blackpool which last year was due to host a special evening of a three-course meal with an ex-international sportsman as guest speaker. All the punters paid £70 plus VAT in advance for their tickets and it was a sellout of 300 people. However the sportsman cancelled a week before the event and because he has long-term health issues did not offer an alternative date.

We offered all the customers a refund which required them to fill in a form with their address and bank details so we could make electronic payments to them.

Somewhat surprisingly one year later 160 people have not requested a refund and we suspect they never will. Does this mean my client can reduce his output tax by £2 240 on his next VAT return namely £14 VAT per ticket...