Lost cash found at work place

If a member of staff finds missing cash at a workplace (workplace is in the hospitality industry) they hand it to the business and the cash is registered as lost/found. If no one claims the money, say after 3 months, and the cash is handed to the employee who found it - is the business required to operate PAYE/NI on this?

Hi Paul Smith,
This is not earned income, so is not taxable.
Thank you. 
 

EIM00520 states: For tax purposes, the word ‘earnings’ in relation to an office or EMPLOYMENT means: - any salary, wages or fee - any gratuity or OTHER PROFIT or incidental benefit OF ANY KIND obtained by the employee if it is MONEY or money’s worth - anything else that constitutes an emolument of the employment This is a wide definition. The second and third bullets ensure that all money payments that are similar to salaries, fees and wages are taxed as earnings. Examples are bonuses, commissions, tips, overtime pay and EXTRA MONEY earnings OF ANY KIND. The cash payment to the individual is only by virtue of their employment. Would it still be treated as non-taxable?

Hi,

Yes, that is correct.

Thank you.