Cycle to Work dealer upping advertised price.

Business to business purchases are normally quoted ex vat (23%)

Exactly, you cannot add vat based on an already inc. vat cost, it's a complete scam which should be investigated.

The company who purchases the bike must pay the vat but may not claim it back as part of their normal expenditure, so in effect they are the end user and should be paying the same cost as if you'd bought it yourself.

Have you actually any evidence that companies are using a third party supplier? I don't see how that would make any sense, and if it was the true the third party would be charging the company and not the bike shop. In any case the OP said the invoice was received directly from the supplier.

Does your bike shop charge the same price for btw schemes as a walk in?

Yes, plenty of evidence. Third party BTW administering companies offer their services to employers, to administer their employees BTW schemes, at no cost to the employers. They handle the funds and make the payment to the bike shop, minus their fees, which cuts the payment the bike shop receives for the bikes. Basically a percentage of the bikes retail cost, just for filling out some paperwork and a couple of online credit transfers. Nice easy money for them, big chunk of margin loss for the bike shop.

Yeah came up as an ad on my search, we don't charge you we charge the shop who then charge you.

How does anyone fall for this sh!t.

Not sure where the need for the quote enters the equation. It's not a requirement of the scheme, so presumably that comes from the employer in this case.

AFAIK, there's no need for the sale to even mention that it's part of the B-T-W scheme. Just that the payment for the bike is made by the employer, and presumably any invoice/receipt would therefore be made out to the employer.

I would agree with the suggestions of finding a different bike and a different store

Check this out. Avoid at all costs:

SECTION 13 - DISCLAIMER OF WARRANTIES; LIMITATION OF LIABILITY

We are a marketplace which means all products are sold on our website are straight from manufacturers. we shall have no liability whatsoever arising from using the products sold on our website

Given that there is the price issue that you first raised, potential tax issues, questions around the legality of the bike, and most importantly of all, no warranty (there are a lot of things to go wrong on an ebike), would you not tell your brother in law to reconsider his choice?

Bike shops aren't building up bikes for sale on the BTW. If you order a bike from a bike shop, it comes with the build specced by the manufacturer.

I'd be very surprised if downgrading of components was happening wholesale in bike shops around the country

i would be very surprised if it wasnt

So are you suggesting that routinely, around the country, bike shops are taking bikes from manufacturers with, let's say, 105 components, stripping them, and rebuilding with Sora or Claris level components?

This, despite the fact that manufacturers will clearly state what level of build any given bike comes with?

The Revenue rules state "There are no restrictions as to where the employer can purchase the goods from."

What's the difference between buying from a middle-man, and buying from a retailer who got the bike from a distributor, in terms of the legislation?