Leaving the council
If you leave the council before the end of your hire agreement, the amount outstanding will be taken from your final net salary payment. This payment can not be taken from your gross pay as you are no longer eligible for the tax and National Insurance savings on the outstanding balance.
Once you have left, the council may be required to report the value of the bike and any equipment as a Benefit in Kind (BiK) on a P11D tax form, for the relevant tax year. It depends on the age and original value of the bike and equipment whether this is required. This applies whether you are part way through an initial agreement or have an extended hire agreement.
If your final net salary value does not cover the final balance of your hire agreement, strategic pay services will contact you to arrange payment of the remaining balance. You may also be expected to pay Vivup an amount in line with HMRC guidelines, depending on the age and value of bike and equipment.