I have scanned the letter that I have received. Can I send this to you by email please?
Ok no problem
I have read HMRC's letter. I have located your original question (13/02/2015) and thus my response.
Essesntially HMRC are making a case that Halls of Leisure is on all fours with similar establishments and liable to VAT registration and hence charging VAT if the turnover in any one year approaches or exceeds 82K. Unfortunately, they would appear to have a relatively sound position. However, the emphasis seems to hinge on the provision of sleeping accommodation which I recall from my original advice is not always the case. Only where total supplies which are standard, reduced or zero rated approach or exceed the turnover threshold need registration take place. Exempt supplies do not come into this aggregation. I would suggest that HMRC need to be reminded of this if, in fact, the non exempt supplies do not reach the threshold.
This is likely to end up in a Tribunal hearing for which you will have to employ a trusted, local professional to front for you.