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Scrap metal licence

A licence is required before any person can collect scrap metal or run a scrap metal site.

Cost

Scrap metal fees are split between an application fee and a fee on grant of a licence. The application fee must be paid at the time of submission. Once it has been determined that a licence can be granted then the remainder of the fee will be due, should a licence not be granted then the second fee is not payable.

Site licence fees

  • Application fee - £317.00
  • On grant - £136.00

Total payable £453.00

Collector licence fee

  • Application fee - £237.65
  • On grant - £101.58

Total payable £339.50

Variation to either licence

  • Application fee - £118.00
  • On grant - £51.40

Total payable £169.40

Conditions

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 us or the police inspect your premises and records if asked.

Renewing your licence

You’ll need to renew your licence every 3 years.

You’ll 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.

Fines and penalties

You could be fined £5,000 if you do not hold a licence.

You could also face the following conditions:

  • you must not receive scrap metal except between 9am and 5pm on any day
  • all scrap metal must be kept in the form it was received up to 72 hours from when it was received

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

For more information, an application or renewal form email [email protected]. The licensing team is available between 9:00am and 4:00pm. 

Last updated 03 April 2023