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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Unless your turnover reaches or approaches 83K in any one year you can forget about VAT.
Why would your customer pay GBP 1.5 to settle a 29 quid bill? 27.5 plus VAT is 33, not 29. Your arithmetic seems a tad odd.
But what about your overall turnover and VAT? That is critical.
Your VAT accounting seems a trifle odd.
Any goods and services you buy in are debited net to your cost of sales and the VAT thereon to Input VAT.
On any sales you make you aggregate everything including the delivery charge, calculate VAT at the standard rate and credit the total less VAT to Sales and the VAt to output VAT. The difference between the two VAT ledger heads will be th tax owning to the VATman quarterly.
Your treatment of the delivery charge is incorrect. You should be charging the net cost to the customer, adding the relevant VAT thereon to the bill and recovering the VAT charged by the delivery agent in your accounts.