Scrap metal dealer licence: site vs collector, cost and how to apply
Written by Sam Allcock · Last updated 23 August 2026 · Facts checked against the Scrap Metal Dealers Act 2013 and GOV.UK guidance on the date above
A scrap metal dealer licence is issued by your local council, lasts 3 years, and comes as either a site licence or a collector's licence under the Scrap Metal Dealers Act 2013.
Trading as a scrap metal dealer without one is a criminal offence, so it's worth getting the licence type right before you start.
This guide covers who needs a licence, the difference between the two licence types, what it costs, how to apply, and the ongoing rules that come with holding one.
This is general information, not legal advice. For anything specific to your business or council area, contact your local authority's licensing team directly.
What is a scrap metal dealer licence?
A scrap metal dealer licence is the legal authorisation your local council grants you to buy, sell or store scrap metal as a business.
Under the Scrap Metal Dealers Act 2013, "no person may carry on business as a scrap metal dealer unless authorised by a licence under this Act" (section 1(1), checked 23 August 2026), and trading without one is an offence liable, on summary conviction, to a fine not exceeding level 5 on the standard scale (section 1(3), checked 23 August 2026).
GOV.UK confirms the practical route: "You must get a scrap metal dealer licence from the council if you buy, sell or store scrap metal" (GOV.UK, checked 23 August 2026).
Who needs a scrap metal dealer licence?
You need one if your business buys, sells or stores scrap metal, whether that's from a fixed yard, a shop counter, or a van doing door-to-door or itinerant collection.
This covers traditional scrap yards and metal recyclers, motor salvage operators who deal in end-of-life vehicles, and mobile collectors who go from address to address buying scrap.
It doesn't matter how small the operation is - the Act applies to "carrying on business as a scrap metal dealer" generally, not just to large recycling firms, so sole traders and small operators are covered too.
Site licence vs collector's licence - what's the difference?
The Act creates exactly two types of licence, and which one (or both) you need depends on how you actually operate.
| Site licence | Collector's licence | |
|---|---|---|
| What it authorises | "A site licence authorises the licensee to carry on business at any site in the authority's area which is identified in the licence" (Scrap Metal Dealers Act 2013, section 2) | "A collector's licence authorises the licensee to carry on business as a mobile collector in the authority's area" (Scrap Metal Dealers Act 2013, section 2) |
| Typical operator | Scrap yards, metal recyclers, motor salvage sites with a fixed address | Door-to-door or van-based collectors with no fixed trading site |
| Named sites | Each site you operate from must be identified in the licence | Not site-specific - covers your mobile collection activity across the council area |
Source: Scrap Metal Dealers Act 2013, section 2, checked 23 August 2026.
If you operate both a fixed yard and a mobile collection round, you may need both types of licence - check with your council if your business model spans the two.
How much does a scrap metal dealer licence cost?
The fee is set locally by each individual council, so there's no single national price - GOV.UK's own guidance on the licence does not state a fee amount, and directs applicants to their local council to apply.
We haven't been able to source a national fee figure because none exists - the fee is set locally, so check your own council's current published fee rather than relying on a figure quoted elsewhere. Find your council on GOV.UK →
✓ Checked against GOV.UK's scrap metal dealer licence guidance, 23 August 2026
Be cautious of any third-party site quoting a fixed UK-wide price for this licence - because the fee genuinely varies by council, a single national figure is a sign the source hasn't checked current guidance.
How to apply for a scrap metal dealer licence, step by step
You apply directly to the council covering the area where your site is (or where you'll be collecting), not to a national body.
- Work out which licence type you need - site, collector, or both, based on how you operate.
- Find the right council for your site address or collection area, via GOV.UK's licence finder.
- Prepare your application details - your personal and company details, proposed trading name, site address(es) for a site licence, and bank account details.
- Pay the council's fee, checking the exact current amount with that council directly.
- Complete a tax check if you're renewing or reapplying for the same licence type within a year of a previous one lapsing - GOV.UK confirms this applies to "renewing a licence" or "applying for the same type of licence you previously held, that stopped being valid less than a year ago" (checked 23 August 2026); first-time applicants don't need one.
- Wait for the council's decision - they can refuse or revoke a licence, including where suitability conditions aren't met.
Renewing your scrap metal dealer licence
Your licence expires exactly 3 years after the day it was issued, and GOV.UK confirms "you'll need to renew your licence every 3 years" - it does not renew automatically.
Renewal uses broadly the same process as a first application, through the same council, with the added tax check requirement described above.
If you're renewing in England or Wales, your existing licence "may be extended until a final decision whether to grant your licence application has been made," according to GOV.UK's tax check guidance (checked 23 August 2026), which gives some protection if a renewal decision is delayed.
What are your ongoing obligations once licensed?
Holding a scrap metal dealer licence comes with a set of day-to-day legal duties under the 2013 Act, not just a one-off application.
- Display your licence at your site, as required by the Act.
- Verify the identity of anyone selling you scrap metal before you buy it from them.
- Never buy scrap metal for cash - the Act specifically prohibits cash purchases.
- Keep records of the metal you receive and dispose of, as the Act requires.
Source: Scrap Metal Dealers Act 2013, sections 10-15, checked 23 August 2026. Councils can revoke a licence or take action to close an unlicensed site under the Act, so these duties are enforced, not optional extras.
Frequently asked questions
Do I need a scrap metal dealer licence to sell scrap occasionally?
The licensing requirement applies to carrying on business as a scrap metal dealer, so if you're genuinely trading (buying, selling or storing scrap metal as a business activity) rather than making a one-off personal disposal, you likely need a licence - check with your council if you're unsure where the line falls for your situation.
How long does a scrap metal dealer licence last?
Exactly 3 years from the date it's issued, under Schedule 1 of the Scrap Metal Dealers Act 2013, after which you must renew - it does not renew automatically.
What's the difference between a site licence and a collector's licence?
A site licence authorises you to trade at named, fixed sites within the council's area; a collector's licence authorises you to trade as a mobile collector across that same area, with no fixed site named.
How much does a scrap metal dealer licence cost?
There's no national fee - each council sets its own fee, so you'll need to check the current published fee with the specific council you're applying to.
Can I buy scrap metal for cash if I'm licensed?
No - the Scrap Metal Dealers Act 2013 prohibits buying scrap metal for cash regardless of whether you hold a licence, as part of its anti-theft record-keeping regime.
Do I need a tax check to get a scrap metal dealer licence?
Only if you're renewing a licence, or reapplying for the same type of licence you held less than a year ago - genuine first-time applicants don't need a tax check code.
apply for licence is an independent guide and is not affiliated with, endorsed by, or connected to GOV.UK, any local council or any government body. This page is general information, not legal or professional advice - for anything specific to your business or council area, contact your local authority's licensing team directly.