ACCORDING to the Adam Smith Institute, in the 2009 calendar year it “only” took 135 days for individuals to reach tax freedom day – the date that the individual’s debt to the taxman is paid off.

The fact that the tax year starts on April 6 is the result of the switchover from the Julian to the Gregorian calendar in 1752, amended for the leap year adjustment in 1800. This means it took everyone until July 16 to break free of HMRC’s grasp.

Tuesday was the start of the 2010- 11 tax year. The main talking points are as follows: ● We have an effective income tax rate of 60 per cent (the highest in the G20) for those earning between £100,000 and £112,950, the result of the withdrawal of £1 of personal allowance for every £2 earned over £100,000; ● The introduction of the 50 per cent income tax band for those earning in excess of £150,000. Combined with last year’s announcement regarding pension contributions, this has made tax and pension planning more complex; ● The importance of entrepreneurs who retain value in the business has been recognised, with the doubling of the entrepreneur’s relief lifetime limit to £2m; ● For companies, the annual investment allowance has doubled to £100,000. However, the first year allowance of 40 per cent has been removed.

This will help smaller companies looking to, and who have the ability to, invest. Unfortunately there are still no allowances for industrial buildings and the annual tax allowance (writing down allowance in tax speak) remains at 20 per cent (previously 25 per cent).

● Green initiatives include 100 per cent first year allowances on the purchase of new goods vehicles that do not produce CO2 emissions. Similarly, there is no taxable benefit for an employee who is provided with a zero-emission car or van.

A number of the above were announced some time ago, so what, if anything, do we know for 2011-12?

Changes to pension relief rules and an increase in National Insurance are proposed – the latter by one per cent on employees (both below and above the earnings cap) and one per cent on employers. This £6.5bn increase in National Insurance is described by many, including the NECC, as a tax on jobs.

Timing in tax can be critical. My brother was born 38 years ago today.

One day earlier and my father would have been able to claim the child tax allowance of £155. My father mentions it so often my brother is waiting for the bill.

■ Chris Beaumont is NECC Tees Valley committee chairman and partner at Clive Owen and Co LLP.