Little Cotton Rabbits

Happy New Year x

 

Just popping in briefly with my traditional annual mosaic of some moments from my 2014 and to wish you and those you love all the very best for the start of the new year. Hope it's a happy, healthy and prosperous one x

 

new EU VAT laws

You can tell by the title that this is going to be a riveting post! It is however one I have to write as I need to explain why some aspects of purchasing my patterns are very shortly changing.

I will continue to sell my knitting patterns to everyone who wants to buy them, regardless of their location, but from January 1st and for the foreseeable future I will no longer be selling my patterns as instant downloads on Etsy but will be emailing them all individually instead. This will mean a little bit of a delay following purchase but I will do my best to send the files within 12 hours of purchase and most of the time within an hour or two (this is because HMRC have said that emailed files are not subject to the new VAT laws - see below).

Purchasers in the UK, USA, Canada, Australia and anywhere else outside of Europe will continue to be able to buy instantly downloadable patterns from my website and Ravelry exactly as before but customers within Europe (not including the UK) will be diverted to buy from Etsy.

This is why...

On January 1st 2015 a new EU-devised law will come into force regarding VAT on all automatically electronically supplied services (telecoms, video streaming, e-books, apps, music, pdfs etc) full details are here. Previously VAT has been payable on the seller's location and there were some sensible thresholds in place to nurture the smallest of small businesses and encourage entrepreneurship and trade.

From January 1st the VAT will be payable on the buyer's location and there is no de-minimis threshold - in other words if you sell a single pdf file/music download etc. to anyone in a European country that you are not resident in (whether you as the seller are in Europe or anywhere in the rest of the world) you will be expected to charge VAT at the buyer's country rate and send that VAT to that country's authorities. You will need to become familiar with the 75 different tax rates across the 28 European member states.

Most European countries have introduced a mini one stop shop (MOSS) service within their revenue and tax departments (in the UK this comes under the remit of HMRC). The MOSS system allows businesses to sign up and submit a single quarterly return of all of their EU sales in one go, with HMRC then distributing the collected VAT to the correct country's tax authorities. This sounds like a good solution but for small businesses the admin burden is extraordinarily complex. Business are expected to collect and store 2 pieces of  non-contradictory information on their customers location and if these contradict then they must collect a third, see this extract from HMRC own website:

Types of supplies covered by the presumption rule include where the digital service is supplied:

• through a telephone box, a telephone kiosk, a wi-fi hot spot, an internet café, a restaurant or a hotel lobby, VAT will be due in the member state where those places are actually located - so if a German tourist makes a call from a telephone box in France, VAT will be due in France

• on board transport travelling between different countries in the EU - VAT will be due in the member state of departure eg, if a ferry operator provides a wi-fi hotspot on board ship which is available to passengers for a fee, VAT will be due in the member state of departure and won’t depend on a passenger’s place of residence

How on earth a sole trader has access to this information is beyond me - I certainly don't have access to these details from paypal purchases.

There is also a requirement for the business to store these details for a minimum of 10 years in case of an audit and that this storage of this sensitive data should be on a secure server - requiring the business to register as a data storage collector.

The law was obviously intended to stop the tax evasion of companies who locate in a low tax rate country when in fact most of their business is done in a country with higher tax rate. It seems that in planning for the new law only those huge multi-national corporations were considered and that those involved with implementation were not even aware that there are 100,000s of individuals around the world selling their own self published literature, music downloads, knitting patterns, digital art etc directly from their own websites to customers in other countries.

So, you can see how daunting this new law is for little people like me who sell toy knitting patterns from their laptop on their dining room table and it seems insane that individuals are expected to comply in the same way as a multi-national company.

As a buyer it will mean that in general you will be paying more VAT than previously and that you will have a lot less choice in where you buy from - many designers have already stated that they will block sales to the EU or will no longer sell their patterns at all. You are also going to be more frequently asked for your phone number or other verifying data when you purchase anything digital on-line.

Most individuals and micro businesses only became aware of this new law in November 2014 and then only thanks to social media (despite the fact it had been agreed by the authorities in 2008) leaving us only a handful of business days to digest the complexities and sort out some kind of compliance.

As a result an EU action group has been formed with the aim of informing the authorities about a sector of the market they had previously failed to take into account, understand or even acknowledge. If this new law affects you either as a seller or a buyer please go and read what they have to say and consider signing one of the petitions calling for thresholds to be put in place to protect the smallest business from having to close under the weight of admin.

Thanks x

.............................................

Other resources:

Facebook group

Ravelry and discussion about EU VAT

Etsy

Folksy

Paypal announcement

Independant accountant view

Enterprise Nation

 

season of peace & goodwill

 

We're in family mode here, all snuggled up and ready for Christmas. Right now I'm still in my jammies (even though it's nearly 3pm), Toby's having a bath and Amy and H are watching Wallace and Grommit. There are a few pressies still to be wrapped and I must remember to get the Christmas chicken out of the freezer (we don't bother with turkey here - preferring all of the trimmings and vegetables to the bird itself) but otherwise I think we're sorted. All that remains is for us to enjoy some quiet time together (despite an excess of coughs and colds) and to wish you peace and joy for whatever holiday you're celebrating. I hope you're warm, safe and surrounded by those you love.

See you in the new year xxx

Peppermint bark day

It's that time of year again, when I find myself stuck for new ideas for Teacher presents and so turn once more to the old favourite, hence today became my annual Peppermint Bark Making Day.

 

 

It's a nice thing to make, though a bit sticky and resulting in lots of washing up but it always seems to be well received, so this year I made lots. I thought I'd share my method and quantities with you in case you'd like to make some - it's great for last minute gifts and very easy and safe to do with children. The original recipe that inspired me is here but over the last few years I've adapted it to readily available UK ingredients:

To make around 60 squares (of approx 1 inch), you will need:

• 5 bars of Green and Blacks organic white vanilla cooking chocolate (150 gm bars)
• 2 bars of Green and Blacks organic dark cooking chocolate (150 gm bars)
• 7 tablespoons of double cream (a 220ml pot is more than enough)
• 1-2 teaspoons of peppermint essence (put one in and taste before adding the second spoon as it depends on the extract that you use - they seem to vary greatly in strength)
• A pack of candy canes (they need to be fresh - don't make the same mistake as me and attempt to use some left over from last year, as you'll find they've gone all soft and sticky)
• A baking tray (around 37cms x 27cms) lined with greaseproof paper
• two bowls for melting chocolate in - 1 for white and 1 for dark

 

 

Method:

Crush your candy canes (see picture at the top). I pop mine in a bag and smack hell out of them with an old rolling pin (which is also good for letting off a bit of steam, though be warned it did dent the rolling pin). You'll find that you get varying chunk sizes plus a fair bit of dust - I find it useful to pop it through a colander to sieve out the finest dust and then crush down any bits that are too big. Set aside the finest dust crushings (as these can go on top of the middle layer) and save the little chunks for the topping.

Melt half of the white chocolate (2 and a half bars) by breaking into small pieces, placing in a heatproof bowl and microwaving on medium heat for short periods at a time. Keep getting the bowl out to check on it and stir the chocolate with a spatula when it starts to show signs of melting. Once it is just over half melted you don't need to keep heating it but instead just keep stirring and the warm liquid chocolate will encourage any remaining lumps to melt down.

Once the chocolate is completely melted pour it onto the greaseproof lined baking tray and spread out into a thin and even layer. One year I used tin foil but it was a nightmare to get off the bottom of the finished slab and you don't want to nibble strips of foil along with your bark.

Pop the tray in the fridge and go off and do something else for half an hour or so until it is fully set. There's no need to wash up the bowl as you'll be melting more white chocolate later.

Now make the ganache filling by melting the dark chocolate, peppermint extract and cream, heating it gradually (in the same way as the white chocolate) and stirring until it thickens, which it will do suddenly.

 

 

 

Let it cool slightly for 5 minutes and then spread it thinly over the chilled white chocolate layer - you might find you don't need all of the mixture. You'll need to work quickly as the cold white chocolate will begin to set the mixture. I sprinkle this layer with the fine candy cane dust (not too much or the top layer won't bond and will come apart when it's cut - she says from experience!) and then pop it in the fridge again for half an hour or until the dark layer is set.

For the final layer melt the remaining white chocolate and pour it over the dark layer - spread it quickly and gently to try and avoid melting the dark layer below and mixing it in which would give you a streaky top! Sprinkle the candy cane chunks over the top while the chocolate is still soft and press them lighly in so that they stay attached when the chocolate sets. Pop the whole thing back into the fridge for an hour or so to fully harden.

 

 

When it is fully hardened trim off the edges (which are the cooks privilege to nibble on) with a sharp knife and cut the slab into squares of about an inch.

 

 

 

According to the original recipe it will keep for around 2 weeks, not that it gets the chance to around here!

It's nice to take a bit of time planning your packaging and I like to make some labels and use some red and white butcher's string to attach them. If you'd like to print some out here is a simple set. Download Peppermint bark labels

 

 

You can either present your gifts in clean glass jars, which I've done previously

 

 

or in paper bags, which I'm using this time as they are safer to send into school in Toby's back pack.

 

 

If you give the recipe a go, I hope you have fun making and gifting the bark and enjoy a little of it yourself too x

 

magazines and a cuppa

It's rather dingy, wet and windy here today, so the best option is to snuggle up with some knitting, a hot cup of tea and some nice magazines.

 

 

And these magazines are particularly nice for me to flick through because I'm in them :)

Many thanks to Lizzie at Simply Knitting for the interview in issue 128 and to Danielle at the beautiful Artful Blogging for featuring my blog header in their 'banners we love' section of the Nov/Dec/Jan 2015 issue.

 

 

The gloves I'm making are  Vagabond fingerless mittens by Misa Erder and I'm enjoying trying out the magic loop technique for the main part of them. It looks complicated but once you get used to it, it is quite straight forward. The pattern itself is lovely, I particularly like the construction of the thumb.

Ok I'm off to knit a bit more before Toby gets home. Wishing you a good weekend and hopefully a relaxing one - though it's so often a manic time of year isn't it?