US Taxes

Yea I know its probably not that bad, I just need to budget somehow how much to set aside out of my UK paychecks to be able to afford to pay the US taxes at the end of the year.

You probably won't have to pay US taxes. Your UK earnings and any bank interest will be taxed by the UK at source and foreign earned income exclusion and /or tax credits will mean you have zero IRS liability. If you have money in the US you might have some US tax due on that and if you elect to be taxed on an arising basis in the UK you'll need to see if you have to pay anything to the UK.

I'd pay to get your taxes done professionally one time just to see what your situation requires and then do then yourself after that.

You probably won't have to pay US taxes. Your UK earnings and any bank interest will be taxed by the UK at source and foreign earned income exclusion and /or tax credits will mean you have zero IRS liability. If you have money in the US you might have some US tax due on that and if you elect to be taxed on an arising basis in the UK you'll need to see if you have to pay anything to the UK.

I'd pay to get your taxes done professionally one time just to see what your situation requires and then do then yourself after that.

I dont think ill be earning much interest on my savings, as said last month I earned 2 pence on my savings, and yea getting my taxes done professionally sounds like a good idea but finding someone in the UK that deals with US taxes would be like finding a needle in a haystack!

   I have an extra layer of complexity. This year I have setup an ltd in the UK of which I own 100% of the shares. Since capital is plays no role in the company earnings, the dividends I am payed through the company are earned income. So I should be able to files a 2555 like anybody else.

  Also, I have found that if you have more than $10k total in your foriegn bank accounts, you must fill out a Form TD F 90-22.1 with the treasury department or face fines.

However in the last few years the government has decided to levy a $10k fine for people who own foreign companies and do not register them with the IRS. However, what Is cannot figure out is:

• Which form do I fill out to declare the company. This seems to depend on opaque US tax definitions.
• If the company or myself will have to pay any additional taxes
• If the company bank account needs to be included in the Form TD F 90-22.1

Any insight is appreciated. It is a small business and it seems unreasonable that I would need to contact a specialist CPA for running a one-man operation.

Honestly to pay a CPA to do your taxes is well worth...You deduct it on the UK side books ect...
I used greenback (they are on here) and it was only 329 and I am self employed but not a limited company.  It might be a bit more but totally worth the piece of mind.
I have a UK friend who is doing my UK books and when I saw the "books" they submit I could not understand it! totally different and worth the 100 quid to have him do those 1X a year as well.

Its all about CYA and getting the most out of your deductions.