Scrap metal
You will need a site or a collector's licence if you deal scrap metal.
Site licence
A site licence allows you to buy and sell scrap metal from a fixed location 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 allows you to travel within Chelmsford to collect scrap metal. You cannot take this metal back to a site that you run within Chelmsford in order to sell it.
You must display the licence on any vehicle that is being used in the course of the business and it must be easily read by a person outside the vehicle.
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.
You must keep a record of all scrap metal you receive including:
- a description including type, form, condition, weight, any marks identifying previous owners or distinguishing features
- the date and time
- the registration mark of the vehicle it was delivered in or on
- the full name and address of the person received from
- the full name of the person who makes the payment acting for the dealer
You must keep a record of all scrap metal you dispose of including:
- a description including type, form and weight (site licence holders only)
- the date and time
- the full name and address of the person disposed to
- if payment is made (by sale or exchange), the price of other consideration received (site licence holders only)
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.
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.