Yes. Under the Scrap Metal Dealers Act 2013, no person may carry on business as a scrap metal dealer unless a licence under the Act authorises them to do so. Scrap metal licences are issued by local authorities, and anyone who trades without one commits an offence. Before you book a firm to take away old metal, it helps to understand who needs a licence, what the two licence types allow, and what the firm must do when it pays you.
Who counts as a scrap metal dealer
The test is whether the firm is carrying on a business. Sheffield City Council explains that you need a scrap metal licence if you operate a business which involves buying or selling scrap metal. Cumberland Council states that a business needs a licence if it buys or sells scrap metal, or collects it from homes or businesses.
"Scrap metal" is broad. Cumberland Council describes it as any old, waste or discarded metal. Cumberland Council says scrap metal does not include gold, silver, or alloys with more than 2% gold or silver content.
Site licence or collector's licence
The Act provides for two types of licence: a site licence and a collector's licence. Sheffield City Council explains that a collector's licence does not allow the holder to operate a scrap metal site in any area. If a firm wants to run a fixed site, it needs a site licence, and in Sheffield you cannot hold both types in the same local authority area.
A collector's licence is the one most relevant to a householder who wants metal removed from their property. The licence holder must display a copy on any vehicle used in the business, and Sheffield City Council says it must be easy to read from outside the vehicle. Applicants also have to show they are a suitable person to hold a licence. Cumberland Council says it will consider previous convictions, and a basic Disclosure and Barring Service certificate is part of the application.
A scrap metal licence does not replace a waste carrier licence. Sheffield City Council is clear on this point, so a firm that also takes away other waste may need to hold both.
Cash payments and records
Licence holders cannot pay cash for scrap metal. Cumberland Council says payments must be made by bank transfer or cheque. The same council says licence holders must check and record the name and address of anyone selling scrap metal, and keep records of all scrap metal received and disposed of for at least three years. Failing to meet these licence conditions is a criminal offence and may lead to prosecution or revocation of the licence.
The Act also sets out what dealers must record when they receive scrap metal, including a description of the metal, the date and time of receipt, and the full name and address of the person it is received from. Licensed dealers must record the full name and address of the person selling to them, and must pay by cheque or electronic transfer.
Checklist before you book a scrap metal collection
- Ask the firm whether it holds a scrap metal licence, and whether it is a site licence or a collector's licence.
- Ask to see the licence, and check that a collector's licence is displayed on the vehicle that comes to collect.
- Confirm the firm will pay by bank transfer or cheque, and be wary of any offer of cash.
- Expect to give your name and address, because licensed dealers must record the details of the person selling.
- If the firm also removes general waste, ask whether it holds a waste carrier licence as well.
- Confirm any charge or payment terms directly with the company or your council, as these vary.
Scrap metal collection is one part of the wider clearance market. If you are comparing firms for a full job, you can review clearance and disposal firms on GetBrent, or look at scrap metal and clearance firms in London if you are based in the capital.
Before you agree a collection, ask each firm to show its licence, and check how it will pay you.
