Readers’ forum: Deregistration dilemma

I read with interest Neil Warren’s recent VAT article ‘Cash is king’ (Taxation 14 May 2020 page 16) and wonder whether I incorrectly deregistered a client last year.

The client operates a seaside guest house with a bar and used to have annual income of £100 000 so was registered for VAT. He then decided to close for four months in the winter each year and live in Spain so his expected annual turnover fell to £75 000 and we deregistered the business.

However Neil mentioned that deregistration cannot be requested if it has been caused by suspending trading for 30 days or more. Four months is obviously more than 30 days so is this a problem that HMRC might pick up?

As a separate question the client is now concerned that the ‘staycation’ outcome of the coronavirus crisis could lead...