Small businesses owners in London have been told that if they file their Employer Annual Return online this year they will receive a £75 tax-free payment.

To file online small firm employers must first register with HMRC's PAYE Online for Employers service. Agents, tax advisers or payroll bureaux can also file on behalf of employers.

Companies based in London with fewer than 50 employees are eligible, and the Employer Annual Returns must be submitted by the 19th of May.

"We are accepting returns now, and would urge all employers to send them in as soon as they are ready, to avoid any last-minute rush," said Sue Williams of HMRC.