OPERATORS of small businesses in Worcestershire want Chancellor Gordon Brown to promise to overhaul the business tax system when he presents his Pre-Budget Report next week.

The Federation of Small Businesses, the UK's biggest business organisation, is pressing the Chancellor to create a tax system that is simple and certain, so that small businesses can contribute even more to the health of the UK economy.

Its proposals include a 100 per cent capital allowance on IT, IR35 legislation to be abolished, the simplifying of HM Revenue & Customs forms and a review of the inspection regime.

The FSB's West Midlands area policy unit chairman, Mike Cherry, said: "The tax system has become far too complex in recent years and needs a complete overhaul.

"The tax credit system should be abolished and corresponding increases in tax allowances implemented, which would take many low-paid workers out of the tax bracket and reduce the administrative burden on employers."