If your child has a place at a school, you will have to deregister her, I think since changes came about in the law about registration in schools.
Have you come across the Early Years Home Education support listyou would get loads of support there and the list is linked to MuddlePuddle a site dedicated to people home educating young children?
There is a book about home educating children aged 0-11 written by Gareth Lewis, a home educator-details on the 'books about home education' thread. You might find that very useful.
Your daughter is very young to worry about her not writing, many other countries don't worry about formal education until their children are around 7 and personal experience has shown that many home educated children 'get' writing when the really see the need for it-and then catch up very fast.
Have you looked into the different ways of home educating? Again there are books of interest in the thread mentioned-I'd particularly suggest reading Alan Thomas' latest book 'How Children Learn at Home' again details on the other thread. It makes very interesting reading.
Why would the LA tell you that you can't home educate?
They would have to have a reason to believe an education is not taking place, to begin to ask for more information-and saying you can't home educate would be along way down the road from there.
And if you are dreading a visit from the LA-then don't have one!
We have been home educating for eight years now and have never had a home visit. The choice of how to give information about the education you are providing, is yours. You could do like we do and send in a written report and 'Educational Philosophy' instead.