HMRC bankruptcy of woman lacking capacity annulled


The bankruptcy of Nicola Haworth after an order obtained by the HM Revenue and Customs (HMRC) has been annulled on the basis that she lacks capacity, and that the HMRC breached the Disability Discrimination Act 1995 (DDA 1995).

The HMRC had been tipped-off that Ms Haworth was running a commercial enterprise and wrote to her requesting tax returns. When none were received, she was assessed to owe over £192,000. However, the reality was that Ms Haworth suffers from chronic mental illness after sustaining physical injuries in an accident, and that she breeds horses as hobby that does not earn her any income.

The HMRC obtained a bankruptcy order against Ms Haworth, and she also lost her benefits and her horses, despite a letter from her mother to the HMRC in 2007 explaining Ms Haworths medical condition and her hobby of horse breeding.

The court held that the HMRC had not made reasonable adjustments to their actions under the DDA 1995 legislation, and that it should have pursued more information from the mother or looked at alternative enforcement methods.



Contact us for legal advice

 

News Categories