Indeed the tax and benefits system is just plain broken.
I as an individual pay tax on the money I am given... why are companies only paying tax on 'profit'? Why can't I write off the cost of my car, fuel, transport, clothes, training (degree) etc?
The current situation allows large companies to offshore their profits to low tax countries... not illegal but hardly fair - I can't offshore my salary to pay no tax.
What we need is a simpler system.
A single flat benefit for all people legally in the UK
A single flat tax on all earnings/takings for people or companies in the UK.
This would be simple, transparent and so easy my laptop could run the system from the corner of the kitchen. I would not need to have a huge paper shuffling group of people processing benefits claims and tax.
Further doing it this way would allow people to go fruit picking in the summer, or take low paid jobs (allowing us to ditch the minimum wage) and to take a chance on a business idea without worrying their family would starve. It would also mean that those with only benefits would move from London etc. to cheaper areas so balancing the cost of housing over the country.