The chairman of the Croydon branch of the Federation of Small Businesses (FSB) has welcomed proposals by the Tax Reform Commission to simplify business taxes.

The commission, which is chaired by Lord Forsyth, has proposed reductions in business tax rates and to simplify the tax system as a whole.

Many small businesses feel the system is too complex, leaving them confused about their obligations and unsure of the benefits and incentives available to them.

Peter Kaminski, chairman of the Croydon branch of the FSB, said the proposed reforms would be beneficial to the UK's small businesses.

He said: "The FSB will support proposals to simplify taxes for small businesses in the UK, no matter which political party they come from. Small businesses have far less time and far fewer resources than their big business counterparts to handle complicated tax calculations.

"If proposals such as these were implemented, small businesses would be freed up to generate more wealth and employment for the UK economy, to which they already contribute more than 50 per cent of GDP."