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 The Act repealed the Scrap Metal Dealers Act 1964 and Part 1 of the Vehicles (Crime) Act 2001, creating a revised regulatory regime for the scrap metal recycling and vehicle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 2013 Scrap metal dealers (who operate from a site in Derbyshire Dales)
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Mobile collectors (who do not operate from a site but collect in the Derbyshire Dales)
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Motor salvage operators (who operate from a site in the Derbyshire Dales); and
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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.
Site 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.
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 they wish 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.
Please note that it is not possible to hold both a Site Licence and a mobile Collectors Licence from the same Council.
Environmental Permits
To be granted a licence to deal in scrap metal, the applicant will need to hold a current environmental permit or registration with 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 is 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 (a number of administrative changes have been made since the policy was written which are reflected on this web page).
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.
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
All applicants must provide a Basic Disclosure Certificate so an individual’s suitability can be assessed. Please note that since 2018 the basic disclosure certificates are no longer available from Disclosure Scotland (as noted in the Policy) for persons living outside Scotland. You can obtain this from the Disclosure and Barring Service (DBS) Request a basic DBS check . 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 the date of the certificate.
The application fee is listed on our Licensing Fees web page.
The licence will last for 3 years.
Tax Conditionality Regulations
From 4 April 2022, there is a requirement for you to complete a tax check with HM Revenue and Customs (HMRC) if you wish to apply for a licence for:
- mobile scrap metal collector
- scrap metal dealer site
A tax check confirms that you’re registered for tax, if necessary. It will ask questions about how you pay any tax that may be due on income you earn from your licensed trade.
You must carry out the tax check yourself. You cannot ask a tax agent or adviser to do this on your behalf.
How changes may affect you
What you need to do will depend on whether you’re applying for a new licence or you are making a subsequent application, such as renewing a licence.
Applying for a new licence
If you are applying for a new licence you will not need to complete a tax check and you should follow the Confirm your tax Responsibilities
The licence application for a new licence will include a section that will link to HMRC’s guidance about your tax responsibilities.
You will need to read this guidance and then confirm that you are aware of this guidance by signing a separate declaration on the licence application form.
If you’re applying as a partner in a partnership, you can give confirmation on behalf of all the partners.
Renewing a licence
The new rules mean if you’re an individual, company or any type of partnership renewing your scrap metal site or collectors licence, you complete a tax check if you’re:
- renewing a licence
- applying for the same type of licence you previously held, that stopped being valid less than a year ago
- applying for the same type of licence you already hold with another licensing authority
You’ll be able to do this online through a digital service Complete a Tax Check for a Scrap Metal Licence .
The Tax Check
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 add the 9 digit code to your application form, where requested, and the licensing authority will carry out a tax check.
What if I fail to provide my confirmation or Tax Check 9 digit Code?
You will not be granted a licence if you do not sign the confirmation that you understand your tax responsibilities or include the 9 digit Tax Check code on your application form.
If I cannot obtain a tax check as the service is unavailable?
If the HMRC service is unavailable you should tell the licensing authority at once. They will ask you to try to access the service for 5 days in a row.
The 5 days start the first time you try accessing the service after the licensing authority asked you to. If you are still unable to access the service and complete a tax check in those 5 days, you:
- do not need to carry out a tax check
- should tell the licensing authority you have been unable to complete one
The licensing authority will check that the service was unavailable before deciding whether to grant or refuse your licence application.
