Research and Development (R&D) tax credits are incentives introduced by the UK Government aimed at promoting innovation and technological advancement. They provide financial benefits and tax incentives to eligible businesses that engage in qualified R&D activities. These credits typically cover expenses related to research and development, including employee wages, supplies, equipment, and contracted research services. The UK government introduced R&D tax relief to stimulate economic growth and competitiveness by supporting businesses in their R&D efforts. The initiative encompasses two types of R&D schemes: the SME scheme for small businesses, and larger companies utilise the Research and Development Expenditure Credit (RDEC).