file on our own or find someone to do it?

It looks like most people on here file on their own?  But maybe they are just the people posting questions? 

My husband and I (both US citizens working in the UK since October) are trying to figure out what to do.  Should we try to file on our own or have someone do it for us?  If we have someone do them for us, how do we find someone who actually will do them correctly? 

We both had jobs in the US last year until October before we came over here to start working so we have income from both countries but since we were not in the UK for more than 330 days, we can't file the 2555 form but can get a credit using the 1116 form?  I also don't know about moving expenses or student loans. 

Just trying to get an idea of how many pay someone to do taxes for them.  We have TONS of student loans and don't make a lot (and moving is expensive!) so the thought of paying someone to do taxes for us kind of bothers me.  Thanks!

We guess that about 25% of the US Citizens in the UK have a firm file for them: more take this up if they are in employment with pensions on both sides, share options and expenses to claim in both jurisdictions and rental income from properties. The cost of a US and UK tax return for one individual is between GBP 350 and 5000. Finding a firm to do both and do it well is easy: you can ask firms like ours who work with CPAs all the time, and we'll give you a choice of three. Since that leaves 75% of people who file their own I guess there should be a demand for an annual course in London for USCs who are DIY filers, but no-one has ever said to us 'I would like this'. Tell me if this is a good idea?

Since that leaves 75% of people who file their own I guess there should be a demand for an annual course in London for USCs who are DIY filers, but no-one has ever said to us 'I would like this'. Tell me if this is a good idea?

That could be useful even to people who have someone do the filing for them -- just to get an idea of what is required. (London might not be the best location for some though  )

Your situation sounds relatively simple and you know about 2555 and 1116 so you know more than many US expats. I think the foreign tax credit 1116 is the way to go for you. Before you employ a professional have a go at doing the taxes yourself and then go to the US embassy as they have a tax office to help you.

Hi there,

I'd like to preface by saying that I am a tax professional - so my answer will reflect the way I see things.

I've actually written an article that explores this very issue - why one might consider doing their own taxes vs having a professional do them: http://www.taxesforexpats.com/about/why-get-professional.html

On the question of pricing, you will generally find most tax firms in London charging 1,000GBP and above - it's an expensive city. Our company is based in NY and we charge a base fee of $350 for Federal Tax return. In today's day and age many clients are happy to work remotely and pay a fraction of what they otherwise would.

On the question of pricing, you will generally find most tax firms in London charging 1,000GBP and above - it's an expensive city. Our company is based in NY and we charge a base fee of $350 for Federal Tax return. In today's day and age many clients are happy to work remotely and pay a fraction of what they otherwise would.

What about UK taxes? The Federal tax return is good, but only half of the story. Some US expats might have to do a UK self assessment, can you advise about their UK tax liability and how the UK and US taxes interact?

There are some great tax advisers in the States. However for most Americans in the UK who feel that they want to use a tax adviser, it is almost always vital to use a dually US/UK qualified tax adviser to ensure that the optimum tax position is reached.

In a practical sense it is typically helpful to use a UK based adviser because:
1.   He or she will be in the same time zone and so you can meet face to face.
2.   The adviser will be familiar with UK tax jargon and all the changes that the UK government constantly make to UK tax rules, UK tax credit rules and issues around UK pensions and savings (and weird concepts such as notional tax credits and taxation of US LLCs and UK LLPs).
3.   If something goes wrong there will be a UK based professional body that will have jurisdiction to listen to complaints such as The Taxation Disciplinary Board http://www.tax-board.org.uk/ - or all else fails a court in the United Kingdom where a claim could be made.
4.   It is a criminal offense in the UK to provide tax advice if the adviser is not supervised for anti-money laundering purposes. To be 100% sure that any tax adviser is as clean as a whistle one should, therefore, always ask any tax adviser who they are supervised by for anti-money laundering purposes.                                                                                                             
I concur that the prices charged do indeed vary dramatically here in the UK from £100 or £200 up to several thousand pounds, so it is fundamental to check what one is buying by checking out professional qualifications.