Hi Rema
Best to give the tax office a call. Tell them exactly how you're running your business and they'll let you know. Theoretically, you'll only need to register for VAT if you earn over £60K (or something.. It changes). In which case, you just need to declare yourself as self employed. But depending on if and where you're importing wholesale goods from, you may need a VAT number anyway.
re: standard docs on policies, you may want to look at
Redirection to Simply-Docs.co.uk who have a lot of templates you can use.
How are you doing your website production and payment methods? Where in the UK are you based? Also, don't buy into that SEO costs a packet crap.. It can do, but any new site will take time to make it's way up the list.
Other advice would be to keep receipts for EVERYTHING. A good accountant will be able to tell you what you can (creatively) claim..
Kevy