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Scrap metal
We provide scrap metal licences to businesses dealing with scrap metal.
You must have the correct licence to deal with scrap metal. Dealing with scrap metal in Chelmsford without a licence from us is illegal and we can issue fines and penalties for businesses without the correct licence.
There are two different scrap metal licences that you can apply for.
Site licence
A site licence provided by us allows you to buy and sell scrap metal at a scrap metal site within Chelmsford.
You must display the licence:
- in a prominent place
- accessible to the public
- at each site identified in the licence
Collector's licence
A collector’s licence provided by us allows you to travel within Chelmsford to collect scrap metal.
You must display the licence:
- on any vehicle being used to collect scrap metal
- in a place that can be easily read outside the vehicle
Legal requirements for Scrap Metal Licences
Both types of licence have general requirements and restrictions that you legally need to follow:
- you must verify the name and address of any individual you have collected scrap metal from
- you can’t accept or use cash for purchasing scrap metal
- you must keep records of all received and disposed scrap metal, including:
- descriptions
- weights
- marks identifying owners
- transaction details
- You must maintain your business transaction records for three years
- We may request access to inspect your premises and records. Essex Police also have the right to inspect your premises and records
Compliance with these requirements is crucial to ensure you:
- adhere to regulations
- operate lawfully
- maintain transparency and accountability
Submitting the application
To submit your application, you will need to provide:
- photographic ID
- birth certificate
- proof of address that is less than 3 months old
- proof of right to work
- relevant environmental permits/licence in force
- proof of bank account details. These are used for payments to suppliers
- a passport sized photograph
If you have lived outside of the UK for an extended period of time, you need to provide a certificate of good conduct.
DBS Check
Anyone applying for a scrap metal licence must have a valid basic DBS check. This check is used as evidence to prove you are suitable to operate as a scrap metal dealer.
For partnerships, each partner must provide a basic DBS check. For companies, directors, company secretaries and shadow directors must provide a basic DBS check.
We do not accept basic DBS certificates issued more than three months before you apply.
You can apply for a basic DBS certificate on the GOV.UK website.
If you already have an account with the DBS service, you must provide us with the latest copy of your DBS certificate.
Tax Check
You will need to complete a tax check. The tax check will ask questions about how you pay any tax on income you earn from your scrap metal licence.
After you have completed the tax check, you will receive a nine-character tax check code.
You will need to give the code to us when applying for your licence, so we can confirm you have carried out a tax check.
Find out what you need to do before you can renew your licence on GOV.UK.
To apply for a scrap metal licence, you will need to:
- complete the online form
- upload your completed form and pay the correct fee
Once you have completed the online form, you will receive a copy of your completed application form attached to your acknowledgement email. You will need to save that file to your device and upload it to our portal.
When uploading the file, you must select 'application form' as the category.
Once we receive your application, we will notify you of our decision within 14 days.
If we grant your licence, it will be valid unless you surrender it or we revoke it. Although you do not need to renew your licence each year, you will need to pay an annual fee. You will need to pay the fee on the same date as when we granted your licence.
You can view and download our Statement of Licensing Policy under the Scrap Metal Dealers Act 2013.
Our licence fees are:
- New site licence application: £430
- Additional site licence (within Chelmsford area): £70
- Site licence renewal: £270
- New collector's licence application: £200
- Collectors licence renewal: £170
- Licence variation: £50
- Replacement licence: £15
- Copy of licence: £5
You’ll need to renew your licence every three years.
To renew your scrap metal licence, you will need to:
- complete the online form
- upload your completed form and pay the correct fee
Once you have completed the online form, you will receive a copy of your completed application form attached to your acknowledgement email. You will need to save that file to your device and upload it to our portal.
When uploading the file, you must select 'application form' as the category.
You could be fined £5,000 if you operate without a licence.
You could also face the following conditions:
- you must not receive scrap metal except between 9am and 5pm on any day
- all scrap metal must be kept in the form it was received up to 72 hours from when it was received
We can revoke a licence at any time and close unlicensed sites.