You must register for VAT with HMRC. This can be done using a paper form or online. Once registered, you generally have to keep reocrds of:
- the VAT you charge on your sales (output VAT)
- the VAT you have paid on your purchases (input VAT)
- the total amount of sales excluding VAT
- the total amount of purchases excluding VAT
However, there are special VAT schemes to suit particular industries or sectors.