Income Tax (Earnings and Pensions) Act 2003

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[F112A(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 250.U.K.

(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 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 or paternity leave, or

(ii)a student on vocational training.]

Textual Amendments

F1Sch. 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)