One in 10 employers have failed to claim a £2,000 rebate on National Insurance Contributions offered to all businesses by the government.

A survey published by software company Sage shows that 11 per cent are yet to apply for the Employment Allowance, which has been on offer since April. In total, employers could be missing out on around £275 million in tax breaks.

The majority, 89 per cent, had claimed the cashback but nine per cent of respondents said they hadn’t checked to see if they were eligible and two per cent simply hadn’t made the effort to claim.

Jonathan Dowden, payroll category manager for Sage UK, said: “Although this is only a small proportion of businesses, the huge number of eligible firms means there is millions of pounds sat in the bank waiting to be claimed.

“That extra £2,000 has the potential for a business to invest in new equipment, help pay off an overdraft, or pay for training for staff. This small amount can go a long way in giving small businesses the confidence to grow and expand.”

To apply for the Employment Allowance, business owners should speak to their accountant or visit Gov.uk – see link below.