# Income Tax (Earnings and Pensions) Act 2003, Paragraph 12A

Extent: E+W+S+N.I.

(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
(a) 500, or
(b) where the company is a specified Northern Ireland company, 250.
(2) The number of employees requirement in the case of a parent company is that the sum of—
(a) the full-time equivalent employee number for it, and
(b) the full-time equivalent employee numbers for each of its qualifying subsidiaries,
is less than 500 or, where the employer company is a specified Northern Ireland company, 250.
(3) The full-time equivalent employee number for a company is calculated as follows—
Step 1
Find the number of full-time employees of the company.
Step 2
Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.
The result is the full-time equivalent employee number.
(4) In this paragraph references to an employee—
(a) include a director, but
(b) do not include—
(i) an employee on maternity , paternity , shared parental , parental bereavement or neonatal care leave, or
(ii) a student on vocational training.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/schedule/5/paragraph/12n1 (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-5/paragraph-12n1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.