Scrap metal dealer licence information

What is scrap metal?

Scrap metal includes:

• any old, waste or discarded metal or metallic material
• any product article or assembly which is made from or contains metal and is broken, worn out or regarded by its last holder as having reached the end of its useful life.

 The following are not scrap metal:

• gold
• silver
• any alloy of which 2% or more by weight is attributable to gold or silver.

Do I need a licence?

You must apply for a scrap metal dealers licence in accordance with the Scrap Metal Dealers Act 2013 and Derby City Council Scrap Metal Dealers Policy if you operate a business which involves any of the following:

• scrap metal dealing
• scrap metal collecting
• motor salvage operations

Licences you can apply for include:

• site licence
• collectors licence.

Gold, silver and any alloy of which 2% or more by weight is attributed to gold or silver is not deemed as scrap metal. You will not need to apply for a licence under the Scrap Metal Dealers Act 2013, Scrap Metal Dealers Act Supplementary Guidance

Tax checks

The rules are changing for applications for:

• scrap metal site licences
• scrap metal collector licences

From 4 April 2022, licensing authorities must carry out checks on applications from individuals, companies and any type of partnership to make sure they are aware of their tax responsibilities or have completed a tax check:

• Tax Check factsheet
• Changes for taxi, private hire or scrap metal licence applications from April 2022
• How to complete a tax check

How long does a licence last?

Once granted, the licence will be valid for three years, unless it is revoked.

How long does a licence take to be issued?

The time taken to process an application depends on each individual application. The time period can range from a minimum of one month up to two months, but this could be longer if appeals are made following a committee hearing.

When an application is submitted, a 21 day consultation period will follow. This allows time for consultees to give their responses to the application.

Fines and penalties

If you collect or deal in scrap metal without a licence you could be fined £5,000.

Certain conditions could also be applied such as:

• on any day scrap metal can only be received between 9am and 5pm
• all received scrap metal must be kept in the form it was received for up to 72 hours.

The council can close a site it is found to be operating without a licence. Licences can also be revoked by the council.

For more information on fines and penalties view the Derby City Council Scrap Metal Dealers Policy.

Revoking a licence

We may revoke your licence if we are satisfied that:

• the licensee does not carry on business at any of the sites identified on the licence
• the site manager named in the licence does not act as site manager at any sites identified in the licence
• we are no longer satisfied that the licensee is a suitable person to carry on business as a scrap metal dealer.

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