Scrap metal

Scrap metal dealer

In recent years the growth of metal theft has had a significant impact on communities, businesses and local authorities alike. Such thefts have seen communications and the train networks disrupted, historic buildings, churches etc. desecrated, and people's safety put at risk with inspection covers, drainage covers and road signage being stolen.

The Scrap Metal Dealers Act 2013 (The Act) was introduced on 1 October 2013 to help prevent some of the issues surrounding the sale, collection, storage and disposal of scrap metal. The Act repealed the Scrap Metal Dealers Act 1964 and Part 1 of the Vehicles (Crime) Act 2001, creating a revised regulatory regime for the scrap metal recycling and vehicle dismantling industries. The Scrap Metal Dealers Act 2013 applies in England and Wales and came into force on 1 October 2013. The Act required anyone previously registered with the District Council to deal in scrap metal and anyone newly planning to deal in scrap metal, to obtain a licence from the local Council, to operate as a scrap metal dealer.

Am I eligible?

The following businesses will need licensing under the Scrap Metal Dealers Act 2013Scrap metal dealers (who operate from a site in Derbyshire Dales)

  • Mobile collectors (who do not operate from a site but collect in the Derbyshire Dales)

  • Motor salvage operators (who operate from a site in the Derbyshire Dales); and

  • All other businesses who buy or sell scrap metal 'in the course of their business – this does not include businesses who buy or sell scrap as the occasional result of their primary business (e.g. pawnbrokers, plumbers electricians).

  • There are two types of licence required depending on the circumstances. These are a Site Licence and a Collector’s Licence.
  • A site licence is required for all sites at which a person carries on a business as a scrap metal dealer within the local authority area. The law requires a site manager to be named for each site. The licence-holder will be permitted to operate from those sites as a scrap metal dealer, including transporting scrap metal to and from those sites from any local authority area. A Collector's Licence.
  • A collector's licence authorises a person to operate as a mobile collector of scrap metal in the District Council’s area, where the licence is granted. This includes commercial as well as domestic scrap metal.
  • A collector's licence does not permit the collector to collect from any other local authority area (a separate licence must be obtained from every local authority area in which he/she wishes to collect). A collector's licence does not authorise the licensee to carry on a business at a site within any area. If a collector wishes to use a fixed site, they would need to obtain a site licence from the local authority. There is no restriction on the location where the collector can transport and sell their metals.

  • Environmental Permits

  • To be granted a licence to deal in scrap metal, the applicant will need to hold an environmental permit or registration from the Environment Agency, which authorises them to carry/transport scrap metal. Once the District Council has granted a licence to deal in scrap metal, the licence-holder's details will be submitted to the Environment Agency, where a national public register of every licensed scrap metal dealer will be held. Regulation summary. No person or business, may carry on the business of dealing in scrap metal unless registered to do so by the Local Authority. This activity is controlled by the Scrap Metal Dealers Act 2013 .

Scrap Metal Dealers' Licensing Policy

The Council's current Scrap Metal Dealer Licensing Policy is available on request.

How will my application be evaluated?

A scrap metal dealer shall be classed as carrying on a business in the local authority area if any of the following apply:

  • S/he carries on a business which consists wholly or partly in buying or selling scrap metal, whether or not the metal is sold in the form in which it was bought, or
  • S/he carries on business as a motor salvage operator (in so far as that does not fall within the definition above).Applicants must be able to provide the following information in the application:
  • The full name, date of birth and usual place of residence of an individual applicant (including mobile collectors), anyone proposed as a site manager for a site, and every partner where a partnership is applying for a licence.
  • The company name, registered number and registered office address.
  • Any proposed trading name for the business.
  • The applicant’s telephone number and email address (if any).
  • The address of each proposed site to be included in the Site Licence.
  • The address of any site in another Council’s area where the applicant already carries on a business or proposes to do so.
  • Details of any relevant environmental permit or registration held by the applicant.
  • Details of any other scrap metal licences issued to the applicant within the last three years before making the application.
  • Details of bank account(s) to be used for cashless transactions. Where a licensee operates multiple sites different bank accounts may be used.
  • Details of any relevant conviction or enforcement action that relates to the applicant.
  • The registered dealer must notify Derbyshire Dales District Council of any changes to these details or if they stop operating as a scrap metal dealer.Incomplete applications will be returned to the applicant for completion, which will delay the grant of the Licence.What if I don't hear back within the specified time.

Will Tacit Consent Apply?

No. It Is in the public interest that the local authority must process your application before it can be granted. However, if you have not heard from us within 21 days, please contact us.

To Apply

The Guidance Notes on how to apply for a licence are currently being updated.

All applicants must provide a Basic Disclosure Certificate so an individual’s suitability can be assessed. You can obtain this from the Disclosure and Barring Service (DBS). When the certificate is returned to you, you will need to submit it to the District Council with your application form and fee. For the purpose of Scrap Metal Dealer Licences these certificates will remain valid for 3 months.

From 1st April 2024 the fees for licences are: Site Licence (for a 3 year period) - £397.50 Site Licence (Variation) - £188.00 Collector's Licence (for a 3 year period) - £224.00

Tax Conditionality Regulations

From 4 April 2022, there will be a small addition to the checks licensing bodies already have in place. You’ll need to complete a tax check with HM Revenue and Customs (HMRC) when you renew your licence to:

Drive taxis or private hire vehicles

Operate private hire vehicle businesses

How changes may affect you

What you need to do will depend on whether you’re applying for a licence for the first time or whether you’re making a subsequent application, such as renewing a licence.

Getting a new licence

If you are applying for a licence for the first time, you will not need to complete the tax check. However, we will ask you to read HMRC guidance on what you need to do to be properly registered for tax in the future and you’ll need to sign a declaration to confirm you have done this.

Renewing a licence

From 4 April 2022, if you renew or apply for a subsequent licence under a different licensing authority area, you’ll have to do a tax check. You’ll be able to do this online through a digital service.

You’ll need to complete a tax check if you’re:

Renewing a licence or Applying for the same type of licence you previously held, that ceased being valid less than a year ago.

If you are applying for the same type of licence you already hold with another licensing authority then you must carry out the tax check yourself. You cannot ask a tax agent or adviser to do this on your behalf. The tax check will ask questions about how you pay any tax that may be due on income you earn from your licensed trade. After you have completed the tax check you will be given a 9-character tax check code. You will need to give the code on your application to the licensing authority, so we can confirm you have carried out a tax check. You will not be granted a licence if you do not give a tax check code to the licensing authority.

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