That was not the point - and I wasn't suggesting that you wouldn't be better off by using a 'small business'. You stated that it would be VAT Free, which it isn't.
That is a rather interesting conundrum. It is also a rather difficult one to decide much less be sure of.
If a business is registered you will be charged VAT. Simple open and shut case.
If a business is not registered you will not be charged VAT. Again simple open and shut case.
However it is the unregistered business that will pay VAT on items they buy that they cannot reclaim or pass on, so they pay VAT. But can only charge a price that returns a profit and, of course, don’t/can’t add VAT.
So as the ultimate consumer my bill is VAT free from my electriction. What his costs are and where his materials come from are irrelevant to me. He may be buying from small businesses (probably not but certainly possible) and so on down the supply chain, so it’s conceivable that nobody in the chain is VAT registered Q.E.D. my payment is possibly totally free of any VAT component at any point.
So I can say that it’s totally VAT free, I didn’t but could if I were able to follow the supply chain.
Because someone down the chain paid something doesn’t philosophically mean that I paid it, don’t you agree? In fact I think HMRC may specifically, and rather insistently, say that I did not.
This is an interesting technical point to consider while locked down.
Now the whole discussion could have been avoided had I said that “
I will not be paying VAT on my bill for the work from my electrician” but “
VAT free” is shorter, though a little less accurate, isn’t it?
This is not intended to be a knock down drawn out fight but rather a point for reasonable intellectual debate.