umbrella company income and deductions - how viewed by the IRS

After having been in the UK for 20 years as a normal PAYE employee for different companies I went contracting last year. Based on advice received I went down the umbrella company route - I was told that if I set up a UK limited company the IRS would see me as major shareholder in a foreign corporation which would greatly complicate my US tax return.

The income taxed by HMRC is my salary from the client minus the umbrella company fee and the employer's portion of the NIC. Can I use the same figure for the IRS?

The umbrella company allows me to take deductions for my commuting mileage as well as a daily subsistence allowance. Can I claim these same deductions with the IRS? Or at least the mileage?

After having been in the UK for 20 years as a normal PAYE employee for different companies I went contracting last year. Based on advice received I went down the umbrella company route - I was told that if I set up a UK limited company the IRS would see me as major shareholder in a foreign corporation which would greatly complicate my US tax return.

The income taxed by HMRC is my salary from the client minus the umbrella company fee and the employer's portion of the NIC. Can I use the same figure for the IRS?

The umbrella company allows me to take deductions for my commuting mileage as well as a daily subsistence allowance. Can I claim these same deductions with the IRS? Or at least the mileage?

As an independent contractor you can deduct the usual expenses, also the home office deduction might be useful to you.

Why do you need deductions on the US return? Don't you have shedloads of excess foreign tax credits from the past 10 years?