Small employers will be allowed to claim up to £2,000 off employer National Insurance Contributions when the government’s vaunted Employment Allowance kicks in next month.

The tax perk goes live on 6th April and the government says 90 per cent of the benefit will go to small businesses employing fewer than 50 people.

Exchequer secretary to the Treasury David Gauke visited start-ups and small businesses in London’s Tech City today, to help spread the news.

Meeting the founders of Grabble, an online fashion start-up, he pointed to the government’s online calculator, which enables businesses to see the level of cash-back they could earn.

Mr Gauke said: “This new tax cut is part of our long term economic plan to back businesses investing in jobs and it was great to hear first-hand the benefit it will bring and what businesses will do with the saving.”