The new income tax framework for Making Tax Digital will be mandatory from 6 April 2024 and the definition of qualifying income is critical to how the system will work.

HMRC is calling on individuals, tax agents and accountants to start using the beta testing environment to feedback on their experiences and iron out any teething problems with the system. However, the trial is quite limited, and is only open to landlords with UK and overseas property income, and self-employed with a sole source of income.

It is important to note that only individuals whose accounting period aligns to the tax year from 6 April to 5 April of a given year will be able to participate in the beta trial.