Skip to content

Scrap Metal Licences

From 1st October 2013 the Scrap Metal Dealers Act 2013 replaced the Scrap Metal Dealers Act 1964 and Motor Salvage Operators Regulations 2002 .

The 2013 Act places a requirement for all businesses involved in buying and selling of scrap metal to be licensed by the Local Authority and includes both those who operate from sites and those who collect door to door (commonly referred to as itinerant scrap metal dealers).

Types of Scrap Metal Licence:

  • A Site Licence
  • A Collector's Licence

You will need a site licence if you operate a site that is involved wholly or partly in the business of buying and selling scrap metal or in the business of motor salvage. A site licence will also permit you to transport metal to and from the site from any local authority area.

You will need a collector’s licence if you are a mobile scrap metal collector that does not have a permanent site and, for example, goes door to door. The collector’s licence will allow you to collect scrap only within the authority area where it was issued. You will need to apply for collector’s licences from separate authorities should you wish to operate in more than one District.

Businesses that are exempt:

Businesses where the commercial gain from buying or selling of scrap metal is only a minimal part overall business dealings are not likely to be considered as a scrap metal dealers. The following are examples of businesses which are likely to not need to hold a scrap metal dealers licence:

  • Manufacturers that sell scrap metal only as a by-product or as surplus materials to the products that they manufacture.
  • Skip Hire companies where the collection of scrap metal is only a minimal part of their overall business.
  • Tradespersons such as plumbers or electricians that sell on a small amount of waste scrap from their business.

Restrictions

You must not receive scrap metal from a person without verifying their name and address

You must not buy scrap metal for cash.

A site licence must be displayed in a prominent place, accessible to the public, at each site identified in the licence.

A mobile collector’s licence must be displayed on any vehicle that is being used in the course of the business and can be easily read by a person outside the vehicle.

You must keep a record of all scrap metal you receive including:

  • a description including type, form, condition, weight, any marks identifying previous owners or distinguishing features
  • the date and time
  • the registration mark of the vehicle it was delivered in or on
  • the full name and address of the person received from
  • the full name of the person who makes the payment acting for the dealer

You must keep a record of all scrap metal you dispose of including:

  • a description including type, form and weight (site licence holders only)
  • the date and time
  • the full name and address of the person disposed to
  • if payment is made (by sale or exchange), the price of other consideration received (site licence holders only)

You must keep your records for 3 years and allow the council or police to inspect your premises and records if asked.

Scrap Metal Licence Information

Tax Conditionality Checks

As of 4th April 2022, the rules changed when renewing a Scrap Metal Dealers licence. As part of our renewal you will be required to do an online tax check.

After you complete the tax check you’ll be given a 9-character code. This is your tax check code. You must give it to the licensing authority with your licence renewal application — we will not be able to process your renewal application without it.

For further information about the tax conditionality.

Last reviewed:
Next Apply