Scrap Metal Dealers Act 2013

The Scrap Metal Dealers Act 2013 ('the Act') repeals the Scrap Metal Dealers Act 1964 (and linked legislation) and Part 1 of Vehicles (Crime) Act 2001, creating a revised regulatory regime for the scrap metal recycling and vehicle dismantling industries.

The Act incorporates the separate regulatory scheme for motor salvage operators into this new regime. This is to replace the previously overlapping regimes for the vehicle salvage and scrap metal industries with a single regulatory scheme.

1. Do I need a licence to carry on as a scrap metal dealer?

Yes. A person cannot carry on business as a scrap metal dealer unless authorised by a Licence issued under the Act.

A person who carries on a business as a scrap metal dealer in breach of this is guilty of an offence and is liable on summary conviction to a fine not exceeding level 5 (currently £5000) on the standard scale.

2. What is the meaning of 'carrying on a business as a scrap metal dealer'?

A person carries on business as a scrap metal dealer if they:

a) carry 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
b) carry on business as a motor salvage operator (so far as that does not fall within paragraph (a)).

For the purposes of (a), a person who manufactures articles is not regarded as selling scrap metal if that person sells scrap metal only as a by-product of manufacturing articles or as surplus materials not required for manufacturing them.

For the purposes of (b), a person carries on business as a motor salvage operator if the person carries on a business which consists:

(a) wholly or partly in recovering salvageable parts from motor vehicles for re-use or sale and subsequently selling or otherwise disposing of the rest of the vehicle for scrap
(b) wholly or mainly in buying written-off vehicles and subsequently repairing and reselling them
(c) wholly or mainly in buying or selling motor vehicles which are to be the subject (whether immediately or on a subsequent re-sale) of any of the activities mentioned in paragraphs (a) and (b), or
(d) wholly or mainly in activities falling within paragraphs (b) and (c)

A 'scrap metal dealer' is a person who carries on the business as a scrap metal dealer, whether or not authorised by a licence.

3. What is the definition of scrap metal?

'Scrap metal' includes:

(a) any old, waste or discarded metal or metallic material, and
(b) 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

But the following are not to be regarded as scrap metal:

(a) gold
(b) silver, and
(c) any alloy of which 2 per cent or more by weight is attributable to gold or silver

4. Are there different types of licences available?

Yes. There are two types of licence, one for a site and the other for a mobile collector (for those carrying on business other than at a site).

A Site Licence which lets you buy and sell scrap metal from a fixed premise, which includes any land or other place (whether enclosed or not), then a site licence is required within the Local Authority area. A single site licence can cover more than one premises within the same local authority area. It also allows the holder to transport scrap metal to and from site(s) from any local authority areas. Each site will have a nominated site manager included on the Licence.

A Collector’s Licence is required if you regularly deal in collecting waste materials and old broken, worn out or defaced articles by means of visits from door to door. You may not take this metal back to a site that you run within the council area in order to sell it. You must obtain a collector’s licence from every single local authority whose area you visit in the course of carrying out your business.

Although you can hold more than one collector's licence issued by separate Authorities, you may not hold more than one licence issued by the same Authority.

5. What do I have to submit with my application form, and will I be granted a licence?

A local authority must not issue or renew a scrap metal licence unless it is satisfied that the applicant is a suitable person to carry on business as a scrap metal dealer. This determination relates to an individual, a partnership, or a company.

In determining whether a company is a suitable person to carry on a business as a scrap metal dealer, a local authority is to have regard, in particular, to whether any of the following is a suitable person:

• any director of the company
• any secretary of the company
• any shadow director of the company (that is to say, any person in accordance with whose directions or instructions the directors of the company are accustomed to act)

In determining whether a partnership is a suitable person to carry on business as a scrap metal dealer, a local authority is to have regard, in particular, to whether each of the partners is a suitable person.

In order to make a determination, the Licensing Partnership will require a Basic Disclosure Certificate (BDS).

A certificate will need to be no more than one month old at the time of application. Refusing to provide a basic disclosure certificate would be grounds under paragraph 4(2) of schedule 1 of the Act for the Local Authority to decline to proceed with the application.

In addition to the BDS, there are a number of other documents that must be supplied with your application. Failure to provide all the documents will mean that your application is invalid and will not be processed. The documents that you need to provide with your application are:

Sites

• a plan of the site (scale 1:50 or 1:100) - Not required for a renewal application

Sites and Collectors

• the correct fee
• copies of each logbook (V5) for each vehicle mentioned in the application
• copies of insurance for each vehicle mentioned in the application
• photographic proof of identity (passport or driving licence), together with proof of address for all site manager(s) and each collector
• one passport-quality photograph taken within the last month of all site manager(s) and/or collectors of scrap. To be accepted, the photograph must be:
  • printed to a professional standard
  • taken within the last month
  • in colour on plain white photographic paper with no border
  • taken against a plain cream or light grey background
  • clear and in focus
  • without any creases or tears
  • unaltered by computer software
  • a close-up of the individuals full head and upper shoulders
  • in clear contrast to the background; and
  • marked on reverse with the individual's full name or if uploaded in the covering email

Photographs must not contain other objects or people, and the individual in the photograph must be facing forward and looking straight at the camera.

The Licensing Partnership shall also consult with the Police; The Environment Agency; Natural Resources Wales, any other Local Authority or any other body as required. The Authority may take into consideration any information received from these sources it considers to be relevant.

6. HMRC tax checks

From 4 April 2022, you need to complete a tax check with HM Revenue and Customs (HMRC) when you renew your site or collectors’ licence to deal in scrap metal.

When you have completed the tax check, you will receive a code. You must give this code to the Licensing Partnership. The Licensing Partnership cannot proceed with your application until the tax check is completed and they have received the code. Therefore, please make sure you do this in plenty of time otherwise your licence could lapse, and you will be required to stop trading and make a new application.

The Licensing Partnership will only receive confirmation from HMRC that you have completed the tax check. They will not have access to information about your tax affairs. Check what you should do on GOV.UK - Complete a tax check.

If you are applying for a new licence, you will not need to complete the tax check. However, the Licensing Partnership 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 confirm in writing that you have done this.

If you need any extra support from HMRC for example, if you need information in a different format or need help filling in the tax forms, please contact them.

7. Is there a fee payable for a licence?

Yes. The fee will allow local authorities to recover the costs from administering and seeking compliance with the regime. Please see our list of fees for the four authorities which form the Licensing Partnership.

8. What happens if the council proposes to refuse my licence?

We will notify you that we are proposing to refuse your application. We will give you 21 days in which to make representations against this; should you wish to make oral representations, then we will arrange for a meeting to convene to hear these.

Should the Sub-Committee/Delegated Officers formally refuse your licence, you may then appeal to the Magistrates Court within 21 days.

9. Once granted, how long does the licence last for?

Three years. The licence holder must renew the licence before the licence expires otherwise it will lapse, and you will not be able to continue to trade legally. Also, a new application will need to be made.

10. What happens if circumstances change after I have been granted a licence?

Under the Act, you are required to notify us of any changes which would materially affect the accuracy of the information you provided to us in the making of your original application, this has to be within 28 days of the changes occurring. You can therefore apply to vary your licence (there will be a fee charged for this).

The options for variation are as follows:

• change of licensee’s details (name or address)
• changes to the sites licensed (adding, removing, or changing details)
• change of Site Managers

Should you cease to carry on the business of a scrap metal dealer, you must also inform us of that fact within 28 days.

11. Do I need to display my licence?

Yes. If you have a site licence, you must ensure that a copy is displayed at each site identified in the licence in a prominent place in an area accessible to the public.

If you have a collector’s licence, you must ensure that a copy is displayed on any vehicle that is being used in the course of your business in a manner which enables it to be easily read by a person outside the vehicle.

12. Can I pay cash for scrap?

No. It is an offence under the Act to pay cash for scrap metal. You can only pay via the below methods:

• by a cheque which, under section 81A of the Bills of Exchange Act 1882, is not transferable, or
• by an electronic transfer of funds (authorised by credit or debit card or otherwise)

In this section, paying includes paying in kind (with goods or services).

13. Do I need to check the identification of a person supplying scrap metal?

A scrap metal dealer (including any site manager) must not receive scrap metal from a person without verifying the person’s full name and address. A scrap metal dealer has to see documents that show the persons:

• full name
• photograph
• residential addresses; and
• date of birth

To do this, a scrap metal dealer will have to see one of the documents listed in Table A, all of which show a person’s name, photograph, and date of birth. However, not all the documents in Table A show a person’s residential address, and if this is the case, a scrap metal dealer will also need to see one of the documents listed in Table B, which shows the person’s name and residential address.

14. In operating as a scrap metal dealer, what records do I need to keep?

The Act states that a scrap metal dealer must record all the metal they receive, together with a record of all the metal they dispose of.

These records must be kept for 3 years beginning with the day on which the metal is received or (as the case may be) disposed of.

Table C sets out what a scrap metal dealer must record with regard to metal they receive.

Table D sets out what a scrap metal dealer must record with regard to metal they dispose of.

When keeping records, a scrap metal dealer must make sure that they can link:

• the scrap metal they receive, with the person they received it from, and any payment made
  to
• the scrap metal they dispose of, with the person they give it to, and any payment received

If you need more help in completing the application, please contact your Local Authority licensing team or the hub team of the Licensing Partnership. 

If completing the form in paper format there is not much space on the form, so if you need to list more than one site manager, director, or partner, or any other details then you must continue on a separate piece of paper setting out the details in the same way as the form. Failure to provide all the required information will mean your application is invalid and will not be processed.

Section 1 - General

This section asks if you are applying as an individual, a partnership or a limited company. You can apply for multiple sites within the Local Authorities area that you are making an application for. For instance, you could apply to run 3 sites in Local Authority’s A’s area. This section also asks for your trading name(s) of the site(s) applied.
 

Section 2 - Site(s) and Site Manager(s)

This section asks you to give full details of the site(s) that you require a licence for and details of the site manager(s). A site manager is the person who will oversee the site on a daily basis.

You are required to provide a plan(s) of the site(s) on a scale of 1:100 or 1:50 with your application.

You are required to provide one passport size quality photograph, taken within the last month of the person(s) named as the site manager(s) with your application. The site manager(s) name must be written on the reverse side of each photo or made clear who the photo is of if it is sent digitally.

The photo of the site manager must be of a  quality photograph, taken within the last month of all site manager(s). To be accepted the photograph must be:

• printed to a professional standard
• taken within the last month
• in colour on plain white photographic paper with no border
• taken against a plain cream or light grey background
• clear and in focus
• without any creases or tears
• unaltered by computer software
• a close-up of the individuals full head and upper shoulders
• in clear contrast to the background
• marked on reverse with the individual's full name or if uploaded in the covering email

Photographs must not contain other objects or people and the individual in the photograph must be facing forward and looking straight at the camera.

Two forms of ID must be provided in respect of every site manager named in the application. One of these must be photographic evidence (passport or driving licence), and one form which shows proof of the site manager’s address.

Section 3 - Planning and Opening Hours

This section asks if your site(s) were established after 1990, then you are required to have planning permission from the Local Authority. You will need to tell us if this is the case, and it will be confirmed with the relevant Local Authority Planning Department. If you do not know this then you can find out by contacting the Local Authority’s Planning Department direct for the Local Authorities area where you are making the application.

Details of the opening hours of the site(s) are also required.

Section 4 - Temporary Storage

This section asks you to give full details of any other temporary location that you may store any scrap metal that you receive. This could include any building, yard, garage or garden.

Section 5 - Motor Salvage Operator

This section asks if you will be salvaging motor vehicles as part of your work. The Scrap Metal Dealers Act 2013 brings together the Scrap Metal Dealers Act 1964 together with Part 1 of the Vehicles (Crime) Act 2001, which means you now only need a scrap metal dealer’s licence.

Section 6 - Bank Accounts

This section asks you for the bank details which you will use to pay people for the scrap metal you receive or sell. This is to check that you are not selling the metal for cash, which is illegal. These details will be kept securely by the Licensing Partnership.

Section 7 - Applicant Details

This section asks details about the name of the person(s)/company who will hold the scrap metal dealers licence. A director or partner is someone who has or shares legal responsibility for the operation of the company, including filing returns at Companies House. If applying in the name of a company details of all directors are required. These details are required by law or to facilitate checks on the applicant or so that you can be contacted if there are any problems.

Section 8 - Environment Agency

This section asks about any environmental permits that you hold. For instance, if you carry waste as part of your business, it is a legal requirement to register as a Waste Carrier. This includes transporting waste while travelling from job to job, to a storage place for disposal later, or to a waste disposal company or waste site. For more information on this or to register, call 03708 506506 or visit GOV.UK - Register or renew as a waste carrier, broker or dealer.

Section 9 - Local Authority Licences and Refused Licences

This section asks for details of all other scrap metal dealers licences that you hold in any other Local Authorities area, along with details of any licences that may have been refused. Please ensure you include the licence number so that we can confirm this against the national register.

Section 10 - Information Commissioner’s Office (ICO)

This section asks for details of your registration held with the information commissioner’s office. As you are required to keep personal details of any person you buy scrap metal from, it is likely that you will need to register with the Information Commissioner’s Office.

Section 11 - HMRC Check

If you are applying for a new licence, you will not need to complete the tax check. However, you are required to read HMRC guidance on what you need to do to be properly registered for tax in the future, and you’ll need to confirm in writing that you have done this.

If you need any extra support from HMRC, for example, if you need information in a different format or need help filling in the tax forms, please visit GOV.UK - Get help from HMRC if you need extra support.

Section 12 - Vehicle Details

This section asks for details of all vehicles that will be used in connection with the business. It is your responsibility to ensure that all your vehicles are roadworthy and are properly taxed, insured and otherwise meet the legal requirements to be on the road. You are required to provide copies of the insurance and V5 (logbook) for each vehicle listed in the application.

Section 13 - Criminal Convictions

This section asks you to set out any relevant convictions or enforcement activity that has been undertaken against you by the Environment Agency or Natural Resources Wales. It is an offence under the Scrap Metal Dealers Act 2013 to make or recklessly make a false statement. The information listed here will be checked against the Basic Disclosure Certificate from Disclosure Scotland that you are required to submit with the application, along with information retained by the police and the Environment Agency or Natural Resources Wales. Details of relevant offences are listed at the end of these notes.

Possessing a conviction may not automatically prevent you from having a licence if the offence was unrelated to being a scrap metal dealer or a long time ago and you can satisfy the Local Authority that you are a suitable person.

A Basic Disclosure Certificate is only valid for a limited time but can be used to apply to as many local authorities as you want within that time. One calendar month is the longest that you can expect your check to be considered valid.

Every person listed on the application form must submit a Basic Disclosure Certificate from Disclosure Scotland. Their contact details are:

• Web site: www.disclosurescotland.co.uk
• Email info@disclosurescotland.co.uk
• Phone: 0870 609 6006

Apply for this certificate

Section 14 - Right to Work

In this section, you are required to ensure that all persons employed by you have a right to work in the UK. You are required to provide relevant evidence to support any persons right to work in the UK, if necessary.

Section 15 - Contact Person

In this section it asks for the name of the person that the Licensing Authority should contact, other than the applicant with regards to the application and to make an appointment to visit the site(s). If this section does not apply then please leave the section of the form blank or state “not applicable”.

Section 16 - Payment

In this section, it asks you to confirm how you want to pay for your application. You will need to contact the Licensing Partnership on 01732 227004 to find out how much the cost is for the Local Authority applied for. The fee reflects the costs of processing the application and ensuring conditions are complied with.

Applications are not valid unless the correct fee has been paid. The fee should be made payable to Sevenoaks District Council who handles the payments on behalf of all the Local Authorities within the Licensing Partnership.

Section 17 - Required Documentation

This section details all the documents required to be submitted with the application. Failure to provide the documents will mean that your application is invalid and will not be processed.  If there is a delay in processing your application, you may be required to submit a further Basic Disclosure Certificate if it is no longer valid (within one calendar month of a valid application being made).

The photo of the site manager must be of a  quality photograph, taken within the last month of all site manager(s). To be accepted the photograph must be:

• printed to a professional standard 
• taken within the last month
• in colour on plain white photographic paper with no border
• taken against a plain cream or light grey background
• clear and in focus
• without any creases or tears
• unaltered by computer software
• a close-up of the individuals full head and upper shoulders
• in clear contrast to the background
• marked on reverse with the individual's full name or if uploaded in the covering email

Photographs must not contain other objects or people and the individual in the photograph must be facing forward and looking straight at the camera.

Photographic proof of identity (passport or driving licence), together with proof of address for all site manager(s) detailed in the application.

The correct fee.

Basic disclosure certificate for all persons named in the application. Only valid for one month.

Copies of each logbook (V5) for each vehicle mentioned in the application.

Copies of insurance for each vehicle mentioned in the application.

Section 18 - Declaration

The person who will hold the scrap metal dealer’s licence needs to sign and date the declaration, as do the other people named on the form. This section also explains that the Local Authority will share some of these details with the Police, Environment Agency, or Natural Resources Wales when checking whether the applicant(s) is a suitable person to hold a licence. Some of the information will also be displayed on a public register.

You are also confirming that you have read the guidance notes issued by the Licensing Partnership which explains that a licensed scrap metal dealer must:

• not receive scrap metal from a person without first verifying the person’s full name and address
• not pay for scrap metal with cash
• keep records of their dealings

In addition, that if a licence is granted that there will be in place adequate procedures to ensure that the provisions of the Scrap Metal Act 2013 are complied with, and in particular:

• Section 11 - Verification of supplier’s identity
• Section 12 - Offence of buying scrap metal for cash etc.
• Section 13 - Records: Receipt of metal
• Section 14 - Records: disposal of metal
• Section 15 - Records: supplementary

If you do not agree to this use of your details, then you should not sign the form. If you are in any doubt about what this section means, then speak to a member of your Local Authority’s licensing team.

Relevant Offences

The Scrap Metal Dealers Act 2013 (Prescribed Relevant Offences and Relevant Enforcement Action) Regulations 2013 prescribe relevant offences and relevant enforcement action for the purposes of section 3(3)(b) and (c) of the Scrap Metal Dealers Act 2013. Pursuant to section 3(2) of that Act, where a Local Authority is processing an application for a scrap metal licence and is evaluating whether the applicant is a suitable person to carry on business as a scrap metal dealer, the Local Authority may have regard to whether the applicant or any site manager has been convicted of a relevant offence or has been the subject of any relevant enforcement action:

• an offence under section 1, 5, or 7 of the Control of Pollution (Amendment) Act 1989
• an offence under section 170 or 170B of the Customs and Excise Management Act 1979(5), where the specific offence concerned relates to scrap metal.
• an offence under section 110 of the Environment Act 1995
• an offence under sections 33, 34 or 34B of the Environmental Protection Act 1990
• an offence under section 9 of the Food and Environment Protection Act 1985
• an offence under section 1 of the Fraud Act 2006, where the specific offence concerned relates to scrap metal, or is an environment-related offence.
• an offence under section 146 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012
• an offence under sections 327, 328 or 330 to 332 of the Proceeds of Crime Act 2002
• any offence under the Scrap Metal Dealers Act 1964
• any offence under the Scrap Metal Dealers Act 2013
• an offence under sections 1, 8,9,10, 11, 17, 18, 22 or 25 of the Theft Act 1968(13), where the specific offence concerned relates to scrap metal, or is an environment-related offence.
• any offence under Part 1 of the Vehicles (Crime) Act 2001
• an offence under sections 85, 202, or 206 of the Water Resources Act 1991
• an offence under regulation 38 of the Environmental Permitting (England and Wales) Regulations 2007
• an offence under regulation 38 of the Environmental Permitting (England and Wales) Regulations 2010
• any offence under the Hazardous Waste (England and Wales) Regulations 2005
• any offence under the Hazardous Waste (Wales) Regulations 2005
• an offence under regulation 17(1) of the Landfill (England and Wales) Regulations 2002
• any offence under the Pollution Prevention and Control (England and Wales) Regulations 2000
• any offence under the Producer Responsibility (Packaging Waste) Regulations 2007
• any offence under the Transfrontier Shipment of Waste Regulations 1994
• any offence under the Transfrontier Shipment of Waste Regulations 2007
• any offence under the Waste (Electrical and Electronic Equipment) Regulations 2006
• an offence under regulation 42 of the Waste (England and Wales) Regulations 2011

 For the purposes of section 3(3)(b) of the Scrap Metal Dealers Act 2013, “relevant offence” means any offence specified above and includes an offence of:

• attempting or conspiring to commit any offence falling within the Schedule
• inciting or aiding, abetting, counselling or procuring the commission of any offence falling within the Schedule
• an offence under Part 2 of the Serious Crime Act 2007 (encouraging or assisting crime) committed in relation to any offence falling within the Schedule