This scheme seems fraudulent. You pay the full price of the bike upfront, then face an additional fee of 25% of the total value at the end, or you're forced to extend the hire contract for another three years at 7% of the value. In the end, you pay between 125% and 107% of the retail price.
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Tax is complicated; the cycle to work scheme is not. You choose a bike, hire it for an agreed length of time, then snap it up for a fraction of its original value. It's like a year-round sale, with interest free credit available in over 2,000 retailers nationwide.
