Still Confused

Okay so I met with a local accountant in the small village I live in now in England, she said it could be anywhere from 300-400 for her to prepare taxes.  I think I saw that price thrown around in other threads so I assume that's pretty much standard.

My situation here is sole-trader, I believe that is what it's called.  I am an independent contractor, at least that is what it's back in the states.  The accountant here confirmed no issue with me being independent contractor.  I invoice my client, work when I want and where I want, have to pay my own supplies etc.  I had concerns about this bc the online assessment system on the HRMC kept coming up as employed no matter what and it made no sense.  She will file the forms for me to register me as a sole trader for 30 pounds.

Back home I normally filed my own taxes bc they were simple, have no house, was single.  Only things changing now is that I am no longer W-2 employee, I am married now, and live abroad.  Now I have nightmares bc I don't understand it now with the two tax systems.

Unfortunately the local accountant doesn't do US taxes.  Should I consider finding someone that does or do I need two separate firms? Is there such thing as an accounting firm that can do both taxes for US and UK here in England? I told my husband we probably need to consider looking in London area.  I guess my reason for thinking I need someone that knows both is bc I thought I read in threads that I may not need to file a return if I make under 80k USD...but I believe there is still a form that needs to be filed that informs the IRS that I am exempt And don't need to file a return. If I get two accountants will there be a disconnect with this? Or Do I just let the US accountant know I live aboard make under 80k and they will know what to do and not need info from UK?

I know I need to file state taxes no matter what bc I lived in Virginia, I may go back some day so I don't want to terminate residency which I read means I am not supposed to go back to my home state...?  Info in this would be helpful, bc I read VA , makes it impossible to declare you don't reside there, even just having voter registration card is claiming residency.

HMRC have cracked down on self-employment. In my industry it's become practically impossible due to employers flouting the rules to avoid paying paye and national insurance.

If you only have one client they may take issue with it, but you could try ringing the helpline 0300 200 3500. They should be able to help you with registration too.

You CAN 'divorce' the Commonwealth of Virginia, but it is a long and arduous process. I did it 3 years ago. It's a matter of breaking ties - and while you MAY go back some day, if you have no specific INTENT to return (own property, have children there, have a car registered there etc.), you can prove change of domicile. Residency and domicile are not the same. Virginia wants to keep you as a 'domiciliary resident' despite not being physically resident there. One thing is an absolute - VA CANNOT use voter registration as a criterion; that was overturned in a Federal court years back. I hope you have informed DMV that you moved (VA requires notification of any change of address w/in 30 days). You are no longer entitled to hold a VA driving license if you live abroad, and using an address that is not your own (parent's, for example) is illegal under VA law.

There are firms who can prepare both US & UK tax returns. Others have used them; I have not, but as I am retired, my tax situation is relatively simple at this point in time. Were I in your situation, I would first try TurboTax or similar software. It may not be as onerous as you think.

Hi, you definitely need to file a US federal return, as well as a UK return. To avoid paying taxes to both the UK and the US, you'll want to claim either the Foreign Earned Income Exclusion, or the Foreign Tax Credit when you file your US return, however which is better for you will depend on the details of your circumstances. Another consideration will be whether it's beneficial for you and your spouse to 'file married separately' or jointly. I'd recommend that you get some professional advice, for the first year at least. After that you may well be able to do it yourself. We use an online firm - google us expat tax preparation services, there are several good ones. Many posters here tut about them, because they're changing the way things are done, but they provide excellent service at a reasonable price. Good luck!

Golden Rules for choosing a tax preparer if you need one...
1. QUALIFICATIONS
Do not be shy! Ask if they are members of professional bodies in both the US and UK and if so, which ones and for how long.
2. COST
Ask what they charge!
3. COMFORT
Pick one who is dual US/UK qualified (so you know that the tax preparer is regulated in both the US and the UK) and who you feel you can get on with. This is personal choice so call a few firms before deciding...