Simply use the identity
$$\arctan (1/x)=\frac{\pi}{2}\text{sgn}(x)-\arctan(x)$$
Then, the limit of the difference quotient is
$$\lim_{h\to0}\frac{\arctan(1/|h|)-\frac{\pi}{2}}{h}=-\lim_{h\to0}\frac{\arctan(|h|)}{h} \tag 1$$
We see that the limit in $(1)$ does not exist since the limit from the right side does not equal the limit from the left side. In fact, a quick check using say L'Hospital's Rule shows that the limit from the right side is $-1$, while the limit from the left side is $1$.
We conclude, therefore, that $\arctan(1/|x|)$ is not differentiable at $x=0$.