An elderly couple were left in shock after receiving a letter demanding more than £60,000 following a blunder by the taxman.

Ronnie Etheridge, 69, was stunned to be sent a bill ordering him and his wife to pay £61,462.80, despite the couple owing authorities just £225.

The retired joiner said he "burst into tears" after realising he and 66-year-old Valerie faced homelessness if they were to pay the first £20,000 by January, as the letter requested.

“I was crying my eyes out when I read it. I was breaking my heart,” said Ronnie’s wife Valerie, 66.

“They wanted the first payment of £20,000 by January and I didn’t know how we would do it. I was in such a state.

“I’ve had three heart attacks in the past and this could easily have made me have another one.”

Dad-of-one Ronnie said: “We only live in a flat. We would be homeless if we had to pay this.”

The couple, of Skelton Court, Kingston Park, Newcastle, received the letter five weeks ago and say the situation is yet to be properly resolved.

“I’ve been worried sick about it,” said Valerie, a retired typist, who is currently undergoing gruelling dialysis treatment in hospital three times a week.

“In the end we went to the tax office and were told the letter was sent because somebody pressed the wrong button and we would only have to pay £225 and apparently it has happened before.”

Valerie and Ronnie, who have a 40-year-old son, say they are yet to receive an apology from the Inland Revenue for the letter.

“We still don’t know what’s going on,” said Valerie. “It’s a huge worry and we haven’t even had a letter of apology.”

The mistake comes as the Government revealed one million Britons are to be told they have underpaid tax.

Her Majesty’s Revenue and Customs (HMRC) has carried out an annual check to make sure that the amount of tax and national insurance deducted by employers matches its records.

One million people will receive letters in the next few months notifying them that they have paid too little tax.

A further six million people will be told that they paid too much tax in the year 2007/8 or earlier, with average rebates of around £300.

HMRC hopes to have the process completed by December 2012.

Last year the Inland Revenue brought in a new IT system intended to make it easier to spot discrepancies.

Now tax office bosses have launched an investigation into the mistake and have finally apologised to the couple.

A spokeswoman for her Majesty’s Revenue and Customs said: “I cannot comment on specific details, but HMRC sincerely apologises for any inconvenience caused to Mr Etheridge. We are actively investigating this matter.”