HMRC has had to withdraw a document explaining tax credit overpayments after an error was found.
A new leaflet which outlines tax credits has been recalled by HM Revenue & Customs (HMRC) after it emerged that it contained a mistake.
The document - Why do overpayments happen? - was contained on HMRC's website. It explained that claimants would receive too many tax credits if they failed to inform HMRC that their income had gone from £9,000 to £20,000 a year. However, income can actually increase by £25,000 before repayments are necessary.
"We agree that the example used on page two of this leaflet concerning income is misleading and we have arranged for this leaflet to be removed from our website," an HMRC spokeswoman told the BBC. "We aim to have a revised version of the leaflet available for our customers soon."
Tax credits were introduced by the government to help people who have children or are on low incomes. According to HMRC, nine out of ten families are entitled to credits.
The exact amount which people can claim depends on factors such as the number of children they have and whether or not they work. However, since 2006 claimants have been able to earn an extra £25,000 annually before their tax credit assessment changes - something not reflected in the HMRC leaflet.
