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@benanza
My point was about the vouchers only working in one selected shop. You couldn't get a voucher and use it to get wheels from Condor and a frame etc from elsewhere. All my vouchers have come for a specific amount from a specific shop. I guess you could get two bikes if you can justify it, that does make sense. If your employer buys it directly from their coffers with no vouchers or companies running it for them etc then they can buy it from where they want up to any value as long as the salary sacrafice doesn't take your net pay below minimum wage.
VAT point is true but the company is not obliged to give this back to you, many (inc mine) keep it to fund the scheme. Really pisses me off but they are entitled so they do.
As for suitable for purpose, you could buy a full suss, downhill MTB and commute on it, the only thing they want to see is that you are using it to get to and from work, but even that is never required to be proven.