self assesment and vat whilst employed

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hello just wondering if you guys could help me please

last year i started my own business selling clothing on ebay and registered for self assessment and vat. i now believe i shouldn't have applied for vat. i am currently employed earning £18000 on paye. i earned £1326 from sales last year and spent £766. i haven't filled in a vat return but have paid £40 every 3 months as hm sent me letters i also paid ni on this. i am just completing my self assessment and that has come to £260 without expenses. could anybody tell me what i can do to try and bring all these costs down?. can i get a refund somehow. am i going to have to fill in a vat return as well and pay 20% on that £1326. this is for year 2013-2014

i am total baffled by all of this and losing sleep worrying help would be very much appreciated thanks in advance
 

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