Scrap Metal Dealers Act 2013
What this means for your business
- Enforced by
- OPSS
- Applies to
- United Kingdom
- On this page
- 11 compliance obligations, 1 practical guide
What you must do
11 compliance obligations under this legislation.
Offences and prohibitions 9
Corporate liability when directors consent or are negligent
If your scrap‑metal business breaks any provision of the Scrap Metal Dealers Act and a director, manager, secretary or similar officer either agreed to it, helped it, or was negligent, both the company and that individual can be prosecuted. The court will apply whatever fine, imprisonment or other sanctions are set for the underlying offence.
Fail to apply to vary licence when required
Fine up to £1,000If your scrap‑metal licence needs to be varied because of a change in the matters listed in the Act, you must submit an application to the local authority. Not doing so is a criminal offence. On conviction you face a fine of up to £1,000.
Fail to comply with a closure order for scrap metal premises
Unlimited fineIf a scrap‑metal site is served with a legal closure order and you allow the premises to remain open, or otherwise breach the order, you commit a criminal offence. The offence applies to anyone who controls the site – owner, occupier, manager or any other person responsible. On conviction you face an unlimited fine on summary conviction (Magistrates' Court).
Fail to display scrap metal dealer licence
Fine up to £1,000If your business holds a site licence or a collector's licence for dealing in scrap metal, you must display a copy of that licence at each site (or on any business vehicle) where you operate, in a place the public can see. Not doing so is a criminal offence. On conviction in the magistrates' court you could be fined up to £1,000, but there is no custodial sentence.
Fail to notify changes required under scrap metal licence
Fine up to £1,000If you are applying for, renewing, or already hold a scrap metal dealer licence and you do not inform the relevant authority of any material change (e.g., moving out of the licensed area, changing your trading name, or any other important information) within the required 28‑day period, you commit an offence. On a summary conviction in the magistrates' court you could be fined up to £1,000.
Fail to verify supplier's identity before receiving scrap metal
Fine up to £1,000If you are a scrap metal dealer, the manager of a site where metal is received, or the person tasked with checking the supplier’s details, you must confirm the supplier’s full name and address using reliable, independent information before accepting scrap metal. Doing otherwise is a criminal offence. On conviction in the Magistrates’ Court you face a fine of up to £1,000.
Obstruct entry or fail to produce records
Fine up to £1,000If you, or anyone acting for you, block a police officer or local authority officer from entering your licensed scrap‑metal site or refuse to hand over records they request, you commit a criminal offence. On conviction in the Magistrates' Court you can be fined up to £1,000. No prison term is attached to this specific offence.
Operate as a scrap metal dealer without a licence
Unlimited fineIf you run a scrap‑metal dealing business you must have a licence under the Scrap Metal Dealers Act 2013. Carrying on such a business without that licence is a criminal offence. On conviction in the Magistrates' Court you face an unlimited fine.
Pay for scrap metal in cash or prohibited method
Unlimited fineIf your scrap metal business pays for metal in cash (or by any method other than a non‑transferable cheque or authorised electronic transfer), you are committing an offence. This also applies to the site manager where the payment is made and anyone paying on your behalf. On conviction in the magistrates' court you face an unlimited fine.
Record keeping 2
Keep detailed records of all scrap metal you receive
Unlimited fineIf you run a scrap‑metal dealing business and take metal in, you must write down what it is, when you got it, how much it weighed, how it was delivered and who gave it to you, plus how you paid for it. You also need to keep any documents you used to check the supplier’s name or address, and copies of cheques or electronic‑transfer receipts. These records must be kept and made available for inspection.
Keep records of all scrap metal disposals
If you run a scrap‑metal business and dispose of any metal, you must record the details of each disposal. The exact information you need to log depends on whether you operate under a site licence or a collector’s licence, but it always includes the date and time, and for site licences also the type, weight, buyer details and any price received.
Penalties for non-compliance
10 penalties under this legislation. 4 carry an unlimited fine.
Fail to comply with a closure order for scrap metal premises
Unlimited fine
Operate as a scrap metal dealer without a licence
Unlimited fine
Pay for scrap metal in cash or prohibited method
Unlimited fine
Fail to keep required scrap metal records
Unlimited fine
Fail to apply to vary licence when required
Fine up to £1,000
Fail to display scrap metal dealer licence
Fine up to £1,000
Fail to notify changes required under scrap metal licence
Fine up to £1,000
Fail to verify supplier's identity before receiving scrap metal
Fine up to £1,000
Obstruct entry or fail to produce records
Fine up to £1,000
Corporate liability when directors consent or are negligent
Penalty applies
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
25 classified provisions from this legislation.
Duties 4
Offences and penalties 10
- Schedule 1 Further provision about licences
- s.1 Requirement for licence to carry on business as scrap metal dealer
- Schedule 2 Closure of unlicensed sites
- s.8 Notification requirements
- s.10 Display of licence
- s.11 Verification of supplier's identity
- s.12 Offence of buying scrap metal for cash etc
- s.15 Records: supplementary
- s.16 Right to enter and inspect
- s.17 Offences by bodies corporate