Scrap metal dealers

Every scrap metal dealer is required to have a licence, and operating without one is a criminal offence. Under the Scrap Metal Dealers Act 2013, the definition of a scrap metal dealer is extended to include motor salvage operators.

It is against the law to pay cash for scrap metal offered to you. Any payment must be received by cheque or electronic transfer (authorised by debit or credit card).

In order for anyone to carry on business as a scrap metal dealer they have to have a licence, which will last for 3 years.

There are two types of licences:

• site licence
• collector's licence

Site license

If scrap metal dealing takes place at your business then you need to hold a site licence. A site manager also needs to be named for each site. This licence allows the licensee to transport scrap metal to and from those sites from any local authority area.

Collector's license

If you are collecting scrap metal you need to have a collectors licence. You need to have a separate licence for each local authority area you collect from. The licence does not authorise you to operate a site.

A scrap metal dealer can only hold one type of licence in any one local authority area. You should decide if you are going to have a site or a mobile licence in any one area.