R&D Tax Credits allow companies to claim a tax reduction or cash payment from HMRC for qualifying research and development expenditure. Since April 2024, the SME and RDEC schemes have merged into a single scheme. Most companies can claim an enhanced deduction of 186% on qualifying costs, resulting in a net benefit of approximately 16.2p for every £1 spent on R&D (or higher for loss-making companies meeting the intensity threshold).