A former taxi driver was forced to quit his job and almost lost his home after the HM Revenue and Customs mistakenly declared him bankrupt in August last year, ITV's The Taxman Cometh will claim tonight.

Matt Matharu, 53, of Kent was just one of 1.5 million British people given an incorrect tax bill last year, according to the show.

Matharu had worked as a self-employed cab driver until 2000, when he became a director at a graphic design firm, switching to PAYE employee status. But despite having his income tax contributions deducted at source, Matharu was sent a bill for £12,000 by Inland Revenue last year.

When they received the letter, Matharu and his wife, Kate, sent documents to HMRC to explain what they thought was a 'misunderstanding', expecting the matter to be resolved. Instead, he was declared bankrupt by a High Court judge in London.

The couple's bank accounts were frozen, Matharu had to quit his job as bankrupts are not permitted to be company directors, and their home was almost repossessed.

'My life was turned upside down and my family almost ended up homeless because of their total and utter incompetence,' he told ITV. 'You just keep hoping and hoping that someone is going to listen, look at the paperwork you've supplied them, press a button on a computer.'

After realising their error, HMRC cleared the £12,000 bill and the bankruptcy order was overturned in January. They now admit Matharu owed just 88p in tax, but are demanding £45 interest on this sum, and also say Matharu is liable for £2,000 in court costs.

HMRC told ITV: 'Mr Matharu should have completed a self-assessment return. However, we did not explain to him why it was necessary for him to do this.

'We apologise for this and also not identifying that he had paid tax at source under his PAYE record.'