{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-5/paragraph-12n1",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-5/paragraph-12n1.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "schedule/5/paragraph/12n1",
  "kind": "paragraph",
  "number": "12A",
  "heading": null,
  "text": "(1) The number of employees requirement in the case of a single company is that the full-time equivalent employee number for it is less than\n(a) 500, or\n(b) where the company is a specified Northern Ireland company, 250.\n(2) The number of employees requirement in the case of a parent company is that the sum of—\n(a) the full-time equivalent employee number for it, and\n(b) the full-time equivalent employee numbers for each of its qualifying subsidiaries,\nis less than 500 or, where the employer company is a specified Northern Ireland company, 250.\n(3) The full-time equivalent employee number for a company is calculated as follows—\nStep 1\nFind the number of full-time employees of the company.\nStep 2\nAdd, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.\nThe result is the full-time equivalent employee number.\n(4) In this paragraph references to an employee—\n(a) include a director, but\n(b) do not include—\n(i) an employee on maternity , paternity , shared parental , parental bereavement or neonatal care leave, or\n(ii) a student on vocational training.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 5 para. 12A and cross-heading inserted (with effect in accordance with s. 33(6) of the amending Act) by Finance Act 2008 (c. 9), s. 33(3)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 5 para. 12A(1)(a)(b) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(5)(a)(9)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Sch. 5 para. 12A(2) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(5)(b)(9)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Sch. 5 para. 12A(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 63(2); S.I. 2014/1640, art. 5(2)(aa)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Sch. 5 para. 12A(4)(b)(i) substituted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 61(1)(a); S.I. 2020/45, reg. 2"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in Sch. 5 para. 12A(4)(b)(i) substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 48(2); S.I. 2025/41, reg. 2"
    }
  ],
  "outstanding_effects": [
    {
      "type": "words substituted",
      "affecting": "ukpga/2025/36",
      "affecting_title": "Employment Rights Act 2025"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/schedule/5/paragraph/12n1",
    "retrieved_at": "2026-10-29T09:18:42.395488+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}