sall

No problem. I can assure you, she will not be upset about using the flag on a mug rug. We have the flag on, mugs, bags, cushions,hats, in fact most wearables The reason being, we are proud to wear it, so go ahead.

dunster

For some reason, when we look at a flag without its flag pole, we just assume that the flag pole is to the left of the flag. (Are we assuming that the wind is blowing from the west to the east?) If you look at the flag from the other side, with the flag pole to the right, then what you have is correct. Here's a picture of viewing the flag from the "back" side - http://en.wikipedia.org/wiki/Flag_of_the_United_Kingdom - look down the left side of the page.

I would fix it, or perhaps put a flag pole to the right.