I've sent the following email to my MP:
I have submitted several tax returns for my clients and I am now receiving revised tax computations from HMRC which are wrong because HMRC have double counted the SEISS Grants received.
It would appear that HMRC have made a major mistake and are asking for tax from taxpayers when there is no tax to pay or even when taxpayers are due a refund.
It shocks me that HMRC don’t appear to have been doing adequate testing at the development stage and there doesn’t seem to be anybody reviewing the revised calculations before they are sent to taxpayers.
The clear conclusion I have arrived at is that HMRC are incompetent.
Please don’t be fobbed off by HMRC claiming it is only a few isolated examples. It has happened with every tax return I have submitted that have included SEISS Grants.
It doesn’t bode well for HMRC trying to push through Making Tax Digital if they can’t get a simple matter right such as taking into account SEISS Grants.
Please ensure that Making Tax Digital is stopped until HMRC are not adjusting correct tax calculations and replacing them with incorrect calculations and are able to deal with letters received from the public in an acceptable time scale and not waiting for three months or longer before responding.
<end of email>
Please note that this is not a complaint about MTD. It is pointing out that HMRC shouldn't be making more changes when they appear incapable of doing simple things properly.