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@DickBarton
Gents, I am a Chief Financial Officer for a City insurance broker; we have a cycle scheme and I have used it myself. The Government's Green Transport Policy under which these schemes are set up isn't a loophole, it's a Government incentive to get more people to be healthy and to reduce environmental damage. The tax break on cycles and cycle safety equipment is written into the Finance Act and is not something that HMRC can object to.
However, what companies should do is write to HMRC to get them to approve the company's scheme and thus avoid queries coming up later. HMRC will give their opinion on whether the scheme is within the rules but will only do so when the scheme is up and running. They will not give approval of a scheme at proposal stage. It is correct that the company benefits from the NIC saving, but if the CFO/FD has decided he doesn't want the hassle of running a scheme (and yes, it is hassle) or he can't be bothered/hasn't got time to research it properly, you could well have a long hard fight to get it set up.