The High Court has annulled the bankruptcy of a woman who lacked capacity and ruled that HM Revenue and Customs (HMRC) breached its duties under the Disability Discrimination Act 1995 (DDA 1995).
Nicola Haworth suffered physical injuries in an accident and suffered from chronic mental illness, including a phobia of opening mail. She bred horses as a non-money-making hobby. Following a tip-off that she was running a commercial enterprise, HMRC wrote to request tax returns and, when they did not receive any, assessed Ms Haworth as owing over £192,000 in tax.
Her benefits were stopped, she lost her horses, and HMRC obtained a bankruptcy order against her. In 2007, Ms Haworth’s mother had written to HMRC, explaining the situation.
The court held that HMRC failed to make reasonable adjustments as required under the DDA 1995 and it could have considered alternative enforcement methods, or made further contact with Ms Haworth’s mother.
Rachel Sleeman, of Five Paper, who represented Ms Haworth, says: “Public authorities should ensure they are aware of their duties under the DDA and the Equality Act 2010 when they take steps to make someone bankrupt, and must reasonably adjust their practices, policies and procedures accordingly.”
.tmb-mov69x69.jpg?sfvrsn=e3c4b2f1_1)
