SNC scrap metal dealers licence

The Scrap Metal Dealers Act 2013 (the Act) requires scrap metal dealers and motor salvage operators to:

• have a scrap metal dealers licence
• verify the name and address of any person from which they receive scrap metal
• not buy scrap metal for cash
• keep records of all scrap metal received or disposed of

Who needs a scrap metal dealers licence 

Any persons collecting, buying or selling scrap metal must have a scrap metal dealers licence.

There are two types of licence:

• a site licence - this is required by an operator who has a site or sites in a council area. It allows the operator to collect scrap from any local authority area in England and Wales
• a collector licence - this is required by anyone collecting scrap in a council area that does not hold a site licence. The licence applies to the specific council area only. If you wish to collect scrap metal from another area you will need another licence from the relevant council

Please note if you apply for a site licence you will not need to apply for a collector’s licence where you are transporting scrap metal to and from those sites.   However you will need to ensure you have the correct planning permission in place for the site, and the relevant permit or exemption issued by the Environment Agency.  This permit or exemption is separate form any waste carrier’s licence you may hold.  Further information can be obtained from the Environment Agency.

If you are applying for a collector’s licence and would also like to collect scrap metal in other local authority areas you will need to apply separately for collector’s licences from each local authority.

Application and fees

Please contact the licensing team

The cost of a site licence is £445

The cost of a collectors licence is £275

Both licences last for three years. You cannot hold the two different types of licence in one council area.

Attachments required

• A basic criminal record check issued by the Disclosure & Barring Service. Where the business is run by a partnership, each partner should complete a criminal record check.  Where the business is run by a company the criminal record check should be completed by all directors, company secretaries and shadow directors.  Site managers should also ensure that they complete a criminal record check.
• A passport size photograph for a collectors licence.
• Photographic ID for both licences, such as passport or DVLA driving licence photocard. If you do not have a passport or DVLA driving licence photocard, you will be required to get a photo endorsed as a true likeness of yourself by a solicitor, notary, lecturer or other professional person.
• Plan of the site showing the area to be licensed for a scrap metal site licence.
• When applying to renew your scrap metal collector or scrap metal site licence you will need to provide us with an HMRC tax check code. This is to ensure you are registered with the HMRC for tax purposes. The tax check code is valid for 120 days.  You will need to register for a Government Gateway user ID and password if you do not already have one. You will also need to know the following information:
  • When you first got your licence.
  • The length of your most recent licence.
  • How you pay tax on the income you earn from your licensed trade.

You will not be able to complete the tax check if the information you give about your tax affairs does not match HMRC's records. You can read further guidance on renewals on the HMRC website. 

If you do not provide an HMRC check code before the expiry of your licence, you will not be issued with a new licence.

When applying to become a scrap metal collector or scrap metal site for the first time you need to confirm to us that you are aware of your tax responsibilities. This is also the case if you have already held one of these licence types but it has not been valid for a year or more. You will be asked to confirm that you understand your tax responsibilities as part of the application process.  If you do not confirm you are aware of the guidance, you will not be issued with a licence.

Fit and proper test

As the licensing authority, we have to be satisfied that an applicant is a suitable person to carry on business as a scrap metal dealer. In considering this, we consult with:

• any other Local Authority (if an application has been made or licence issued to the same applicant)
• the Environment Agency
• the police

We do this in order to assess the following criteria:

• whether the applicant or any site manager has been convicted of any relevant offence
• whether the applicant or any site manager has been the subject of any relevant enforcement action
• any previous refusal for issue of or renewal of a scrap metal licence
• any previous refusal for an environment permit or registration
• any previous revocation of a scrap metal licence
• whether the applicant has demonstrated that there will be adequate procedures to comply with the Act

All of the above will apply to any director or any secretary of a company if the applicant is not an individual.

The Home Office has issued a guide to licensing authorities to assist with determining the suitability of applicants. 

Insurance of vehicles collecting scrap metal

You must also ensure any vehicle you use for the collection of scrap metal is properly insured.  You will need to speak to the insurance company that provides insurance for your vehicle involved in the collection of scrap metal to ensure it is adequately insured. The police may carry out checks to ensure your vehicle is properly licensed.

Conditions attached to a licence

Local authorities, when issuing a licence, may impose prescribed conditions if the licensee or site manager has been convicted of a relevant offence. The two conditions that can be imposed by local authorities on a licence, are:

• that the dealer must not receive scrap metal except between 9am and 5pm on any day
• that all scrap metal received must be kept in the form in which it is received for a specified period, not exceeding 72 hours, beginning with the time when it is received

Varying a licence

We can vary a licence, imposing the conditions stipulated above, if the licensee or a site manager is convicted of a relevant offence.

Renewing your licence

You’ll need to renew your licence every 3 years. It is your responsibility to ensure you have renewed you scrap metal licence if your licence has expired.

You will need to complete a tax check telling HMRC how you pay tax on earnings related to your scrap metal licence. Find out what rules you’ll need to follow before you can renew your licence. 

Revoking a licence

We can revoke a licence on particular grounds, including where we are no longer satisfied that the licensee is a suitable person to carry on the business as a scrap metal dealer.

Fines and penalties

Collecting scrap metal or operating a scrap metal site without a scrap metal licence is a criminal offence.  A person convicted of an offence of carrying waste without lawful authority is liable to a level 5 fine, which is currently unlimited, as well as possible legal costs.

You could also face the conditions outlined above being imposed on your site licence.

A council may revoke a licence at any time and close unlicensed sites.

Operating without an upper-tier waste carriers licence

If your upper-tier waste carriers licence is revoked by the Environment Agency or it expires and you don’t renew it and you continue to carry waste (scrap metal) you may be prosecuted under section 5B of the Control of Pollution (Amendment) Act 1989 and/or your vehicle may be seized.  A person convicted of an offence of carrying waste without lawful authority is liable to a level 5 fine, which is currently unlimited, as well as possible legal costs.

Records a scrap metal dealer must keep

The Act requires any scrap metal dealer to record the following information regarding any scrap metal purchase or disposal and retain the record for three years.

Records to be kept for metal received 

• the description of the metal, including its type (or types if mixed), form, condition, weight and any marks identifying previous owners or other distinguishing features. The requirement to link recorded descriptions to the scrap metal to which they relate is intended to be proportionate and it may not be possible to go into the same level of detail for larger deliveries. If the scrap is (for example) one washing machine, it would be sensible to say so rather than use a more generic term. The records should contain sufficient identification detail to ensure there is no intention to obscure the identity and type of metal being processed
• the date and time of its receipt
• if the metal is delivered in or on a vehicle, the registration mark of the vehicle
• if the metal is received from a person, the full name and address of that person
• if the dealer pays for the metal, the full name of the person who makes the payment acting for the dealer
• if the dealer receives the metal from a person, the dealer must keep a copy of any document which the dealer uses to verify the name or address of that person
• if the dealer pays for the metal by cheque, the dealer must keep a copy of the cheque.
• if the dealer pays for the metal by electronic transfer:
  • the dealer must keep the receipt identifying the transfer, or
  • if no receipt identifying the transfer was obtained, the dealer must record particulars identifying the transfer

Records to be kept for metal disposed of 

• whether or not it is in the same form in which it was received
• whether or not the disposal is to another person
• whether or not the metal is dispatched from a site

Where the disposal is in the course of business under a site licence, the dealer must record the following information:

• the description of the metal, including its type (or types if mixed), form and weight
• the date and time of its disposal
• if the disposal is to another person, the full name and address of that person
• if the dealer receives payment for the metal (whether by way of sale or exchange), the price or other consideration received

Where the disposal is in the course of business under a collector’s licence, the dealer must record the following information:

• the date and time of the disposal
• if the disposal is to another person, the full name and address of that person

Other matters

The police routinely stop and check those collecting scrap metal to ensure the vehicles are safe and not defective or overloaded and that any load is properly secured. Some vehicles have previously been seized by the police for being dangerous.  It is your responsibility to ensure you are operating safely and legally at all times.