Self-Assessed & Forms

Preliminary Tax

An advance tax payment required for many self-assessed taxpayers.

Definition

Preliminary tax is an advance payment toward your current year tax liability under self-assessment. The rules can impact cash flow and may depend on the payment option chosen and the type of income.

Why it matters

It affects cash flow because you pay part of the current year’s tax before the return is filed.
Choosing the wrong option can increase risk of underpayment and interest.

Common use cases

Planning year-end cash flow
Pay and file preparation
Landlord or contractor tax planning

Last reviewed: 2026 · Tax year: 2026Found a mistake? Let us know

Related terms

Form 11 Balance of Tax

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.

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Definition

Preliminary tax is an advance payment toward your current year tax liability under self-assessment. The rules can impact cash flow and may depend on the payment option chosen and the type of income.

Why it matters

It affects cash flow because you pay part of the current year’s tax before the return is filed.
Choosing the wrong option can increase risk of underpayment and interest.

Common use cases

Planning year-end cash flow
Pay and file preparation
Landlord or contractor tax planning

Last reviewed: 2026 · Tax year: 2026Found a mistake? Let us know

Related terms

Form 11 Balance of Tax

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.