Scrap metal dealers licence

The Scrap Metal Dealers Act 2013 replaced the Scrap Metal Dealers Act 1964 and the Motor Salvage Operators Regulations 2002. Provisions of the Act include the following:

• the requirement for metal dealers to satisfy their local authority that they are a legitimate trader
• all sellers of metal must provide verifiable identification at point of sale which is recorded and retained by the dealer
• a cashless offence will apply to all scrap metal dealers including 'mobile/itinerant collectors' who conduct house to house collections
• two types of licence: a site licence or a collector's licence
• a single national publicly available register of all scrap metal dealers which is maintained by the Environment Agency.

There are fees applicable for this licence.
 
Under the Act, the Council must not issue a licence until satisfied that the applicant is a suitable person to carry on business as a scrap metal dealer. In the case of a partnership this means assessing the suitability of each of the partners in the partnership, while in the case of a company it means assessing the suitability of any directors, company secretaries or shadow directors.

How to apply

Scrap Metal Licence application form

• Applicants must provide a Basic Disclosure certificate for these persons from Disclosure and Barring Service to submit along with their application form.
• Newcastle City Council will additionally consult on all applications with Northumbria Police, Environment Agency, other local authorities and relevant internal departments.

HMRC tax requirements 

HMRC has published further guidance to help licensees and licensing bodies prepare for the new tax checks that were introduced in Schedule 33 of Finance Act 2021. The detailed guidance is in addition to and sits alongside the preparatory guidance published in October 2021, which is still available. 

This will be a new addition to the checks that licensing bodies already have in place, and it will need to be completed when people are renewing heir licences to:

• drive taxis or private hire vehicles 
• operate private hire vehicle businesses 
• deal in scrap metal

The changes will apply in England and Wales from 4 April 2022.

The new guidance is now available for licensees to tell them how to do their tax check. They are asked to read this guidance and to familiarise themselves with what they will need to do for the tax check. They are also asked to ensure they are registered to pay the appropriate tax on their licensed income. 

Applicants Guide to completing a Tax Check

Changes for taxi, private hire or scrap metal licence applications from April 2022: Applicants Guide

More information

Scrap metal guidance notes

Home Office guidance on the buying of scrap metal for cash

Newcastle City Council licensing authority area map

This information has no legal force and is not an authoritative interpretation of the law, which is a matter for the Courts. It is intended to help businesses to understand in general terms, the main features of the legislation. The information is not a substitute for the legislation and you should refer to the text of the legislation for a full statement of legal requirements and obligations. Where appropriate, you should seek your own independent legal advice.

Contact: Licensing Office, Unit 2, Wincomblee Road, Newcastle upon Tyne, NE6 3PF

Email: NCCLicensing@newcastle.gov.uk