The row over child tax credits has gone away recently. The problem was neutralised politically by the government’s decision to raise the level of the ‘disregard’ from £2,500 to £25,000, meaning that people with salary rises of that figure do not now have to return overpaid credits.

But should advisers still be concerned? Though many do not handle tax credit claims, the fact it continues to take up HM Revenue & Customs’ time and effort suggests the problem should be on advisers’ radars.

At a meeting of the commons Treasury sub-committee last week, HMRC officials indicated that staff levels on tax credits would continue to increase.

HMRC chairman Sir David Varney told MPs: ‘We have concentrated on getting the resources we have got to focus on the problems we faced. We think that has bedded down. We have some more work to do over 2006. Then the tax credits office will become part of the productivity drive we are managing across HMRC.’

Should advisers be worried? John Whiting of Pricewaterhouse-Coopers said the biggest concern is that, if HMRC is focusing on tax credits at a management level, it might deprive other issues of management focus.

Might that open the tax authorities up to the risk of greater fraud? Will clever avoidance plans escape their notice? Perhaps, in the light of the trusts row and other changes, the greatest fear might just be that more inappropriate tax legislation will be introduced without it being considered or consulted upon.

Whatever the political heat of the tax credits row, it looks likely to remain important to those with a stake in the tax system for some time to come.