New Car - Do I need to tell IP?

[luluj]

I am selling my car on Saturday for £1550 cash - and replacing it with a newer car valued at a garage for £1995 - the difference being paid for out of my car contigency fund that has built up over the months.

I am not taking out any credit what so ever - all will be paid for in cash and from my own account -for once I can smile on this - should I tell my IP or is it insignificant as there no real difference?

[MelanieGiles]

There is no need to advise your IP of the change, so long as the car was an excluded asset from the proposal. However, if there are going to be changes to the amount you pay for tax and insurance, these should be disclosed at the next annual review.

[luluj]

When my IVA was drawn up and I&E assessed my car insurance / tax etc was set for a one litre vehicle. However in my proposal I had to release the equity in this car and then buy a cheaper car - unfortunately this car has cost us more to run - hence the change in car at the weekend -so for the last few weeks we have spent more than we had been allowed therefore we will simply be spending what out I&E has been approved.