Image upload error on Pages, Posts and Post Types

This is quite a common issue I’ve seen in the forums but I can’t seem to find a solution that fixes my problem.

Adding new images (Add New Media) to a page or a post does not work and always returns the following error.

“An error occurred in the upload. Please try again later”

I have no idea what this error is and how to fix it. How can I find an error log to trace the problem and fix it?

I’m not sure I can contact my web host because I’m building this using XAMPP localhost to develop before I transfer this to the web domain.

XAMPP 3.3.2
Wordpress 4.4.2
phpmyadmin 4.4.14