Hiya All!
Jambo you are correct…
As nbt says, all Cycle to work schemes are hire, with the possible option from your employer to buy in the end. If it was a buying agreement it would go on P11D and you'd pay tax.
But whats the likelyhood that at 12 months the employer wants to keep your bike?
Your looking at a bike to cycle to work on for 50%+ of its use, what 'upgrades' would you need to do?
You'd look after the bike like it was yours tho, so if your wore out a BB you'd need to replace it.
As for the original question, yes you can Finance it and make it cost neutral to the Employer. There is no need for any of the scheme to cost you or the employer in anything other than a small amount of time.