@PaulM, if a VAT registered business sells you a product then the VAT will be included in the price you pay. As you are not VAT registered you cannot claim the VAT back.

@Paul Siwek – Yes you would need to account for VAT as you are a web hosting services but only if your customers are from the EU (not UK) or you start making more than the current threshold.
Unless you’re doing anything special with their data, you are under no requirement to register, see ico.org.uk for more info.