The Department for Transport has warned providers of bikes-for-work schemes to make sure that their marketing materials accurately reflect the tax break.
The DfT sent a letter to all providers last month stating that it had concerns over "the promotion of the scheme as an opportunity to 'buy' a new bike at a reduced price" when, in fact, the tax exemption is only for employer-loaned cycles.
The letter also warned against marketing that suggests employees can buy a bike above the £1,000 consumer credit licence by topping up their salary sacrifice arrangement, as the tax exemption wouldn't apply.