Selling Scrap Metal? How KAS Stays Compliant

To ensure that scrap metal buyers and sellers are trading fairly, the UK Government enforces scrap metal regulations.

These regulations also prevent theft, protect the environment from hazardous materials, ensure public & worker safety, and maintain fair practices. But what does this mean for tradespeople? Do you need a licence to sell scrap metal? Find out more below.

Which permits or licences are required for scrap metal recycling in the UK?

In the UK, you must get a scrap metal dealer licence from the local council if you buy, sell or store scrap metal. This must be either a site or mobile collector’s licence. Here’s the difference:

• Site Licence: Authorises the licence holder to carry out business at any site in the council’s area which is identified in the licence.
• Collector’s Licence: Authorises the licensee to carry out business as a mobile collector in the licensing council’s area only. 

Why are cash payments banned?

Following Home Office reports of 61,000+ metal thefts in 2013, the UK government introduced the Scrap Metal Dealers Act (2013) to put a stop to these offences.

One of the changes this act made was the enforcement of no cash payments in scrap yards. This was to make all transactions traceable, stop money laundering and prevent tax evasion. Other laws enforceable under this act include:

• A licence is required for metal trading and must be issued by the local authority.
• Any site caught trading without a licence may be fined up to £5,000.
• Payments must be made though electronic bank transfer or cheque.
• Records of a seller’s name and address must be retained, as well as a receipt for the scrap metal.

Do tradespeople need a scrap metal licence?

It depends. Under the Scrap Metal Dealers Act (2013), “tradespersons will not require a scrap metal dealer’s licence if buying or selling scrap metal is an incidental function of their business (e.g. being a plumber or electrician).”.

However, the court has to decide whether, under all the circumstances, the buying or selling of scrap metal forms the whole or part of the person’s business.
Learn more on the government website.

How does the scrap metal recycling process work at KAS?

As a licensed scrap yard, the scrap metal recycling process at KAS is simple. Here’s how it works:

1. Arrive at the yard with prepared scrap metal (i.e. stripped cable, clean metal, rust removed, non-metal attachments removed, etc.).
2. Park your vehicle in the designated zone and watch your weigh-in from our safe and tidy waiting area.
3. Our site operatives will weigh and grade your scrap to assess how much it is worth – this number is always based on the London Metal Exchange (LME).
4. Once your scrap has been through our metal analysis systems, we’ll provide you with a compliant weigh-in ticket and explain our payment options to you.

Start Recycling Responsibly Today

Start recycling responsibly with KAS Metal Trading today. We offer:

✅ The very best scrap metal prices, always based on the London Metal Exchange (LME).

✅ Fast turnarounds, allowing you to get back to what you do best as soon as possible!

✅ Flexible same-day payments (before 4pm) via cheques, bank transfers or our very own pre-paid card method.

Give us a call, email or visit our local scrap metal yard at M46 0RY today. Based in Atherton, our scrap metal merchants can also service the following locations:

• Astley
• Bolton
• Chorley
• Lancashire
• Leigh
• Manchester
• Preston
• Salford
• Tyldesley
• Westhoughton
• Wigan
• Worsley

Staying Compliant with Scrap Metal Regulations: FAQs

How do I tell if a scrap metal dealer has a scrap metal licence?

You can check if a scrap metal dealer is licensed by searching for their name/business online via the Register of Scrap Metal Dealers.

Do I need to show ID when selling scrap metal?

Yes. According to the British Metals Recycling Association, anyone selling scrap metal must show either:

• A photocard driving licence (which shows your address)
• A current passport and supporting document, consisting of one of the following:
  • A utility bill (not a mobile phone bill)
  • A bank or building society statement 
  • A debit or credit card statement
  • A council tax letter

What happens if I sell scrap metal without a licence?

You could be fined £5,000 if you don’t hold a license. You could also face the following conditions:

• You must not receive scrap metal 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.
• A council may revoke your licence at any time and close unlicensed sites.