Is it better to focus on a new contract or my startup idea?

Split your week but prioritize the venture. Securing a new contract often takes 4-6 weeks of effort. Use that inevitable downtime to build. If you treat your startup as a side project, it stays one. Use the financial cushion from your last role to fund your first 90 days of pure development.

How do I handle IP if I start working while still on notice?

Check your previous contract's 'Inventions' and 'Moonlighting' clauses immediately. Most standard UK contracts claim ownership of work done on company time or equipment. Ensure your new codebase is built on personal hardware and outside billed hours. If in doubt, wait until the day after your formal exit to commit your first line of code.

Should I close my PSC or use it for the startup?

Keep your Personal Service Company active. It is a ready-made vehicle for your new business. It costs roughly £1,000 to £2,000 per year in accountancy fees to maintain, which is cheaper than closing and restarting later. You can also offset your initial startup losses against company profits if you still have remaining revenue.

How much runway do I actually need to stop contracting?

The 'survival' rule is 6 months of personal expenses plus 20% for unexpected overheads. Research shows that 90% of startups fail due to cash exhaustion. If you have less than 4 months of runway, consider a short-term 'bridge' contract while building your MVP at night to de-risk the transition.

Can I claim R&D tax credits even if I am pre-revenue?

Yes. If you are developing a new process, product, or service that resolves technical uncertainty, you can claim. For SMEs, this can mean a tax credit worth up to 18.6% of your qualifying expenditure. Keep meticulous records of your development hours and costs from day one to ensure a valid HMRC claim later.