Car Breaker’s Licence: Everything You Need to Know

If you’re setting up a car breaker’s yard in the UK, you’ll need more than just tools and space. To legally break cars, then reuse, resell or recycle their components, you need (among other things) a car breaker's licence.

The licence legally designates a yard as an ATF, which allows it to legally dismantle, depollute and recycle end-of-life vehicles. Without that, operating a vehicle recycling business is 100% illegal. It also proves you meet the UK’s environmental standards and regulatory obligations.

Below, you’ll find everything you need to know about car breaker’s licenses and how to get one.

What is a car breaker's license?

A car breaker’s licence is the commonly used term for the legal approval required to dismantle and recycle vehicles in the UK. In practice, it authorises a breaker’s yard to accept end-of-life vehicles, remove their reusable parts and safely dispose of the leftover hazardous materials. Without this approval, breaking cars is illegal.

This licence framework exists to regulate vehicle recycling and protect people, property and the environment. It ensures fluids, batteries and other pollutants are handled correctly, vehicles are depolluted to set standards and records are kept for traceability and compliance.

That said, there is no official ‘car breaker’s licence' in UK law. Any business breaking cars must operate as an Authorised Treatment Facility. ATFs are regulated under an environmental permit in England and Wales, or a waste management licence in Scotland and Northern Ireland.

How to apply for a car breaker’s licence

To apply for a car breaker’s licence, the process depends on where you’re located. You’ll apply to the Environment Agency if you operate in England, NRW if you’re in Wales, SEPA if you’re in Scotland and DAERA if the yard is in Northern Ireland.

That said, the general steps are the same. You’ll need to submit site plans, go through an environmental risk assessment and prove you meet ATF requirements. Regulators may inspect your yard to confirm safe storage, depollution controls and record-keeping.

Once you’re approved, you pay the relevant fees and receive your permit. Accuracy matters here because errors or non-compliance can delay or derail the application.

Here are the exact steps you’ll go through when applying for a car breaker’s licence in the UK:

1. Check eligibility requirements.

Across all parts of the UK, facilities that want to operate as an ATF must meet environmental and operational standards tied to the relevant waste regime in that nation. The legislation implementing these requirements comes from the UK’s End-of-Life Vehicles (ELV) Regulations and associated waste permitting/licensing frameworks.

Whether you’re in England, Wales, Scotland or Northern Ireland, qualifying for a car breaker’s licence requires you to:

• Hold planning permission from the local authority for the site use.
• Have a facility with secure boundaries, impermeable surfaces and proper drainage to prevent pollution.
• Demonstrate that vehicles are depolluted and handled in an environmentally safe manner.
• Comply with hazardous waste and duty-of-care regulations.
• Be considered a ‘fit and proper person’ to hold the licence.

If these requirements aren’t met, the application won’t progress. So, getting eligibility sorted out upfront saves time and money, as well as preventing avoidable rejections later.

2. Prepare the required documentation.

The documents you need depend on the type of environmental permit you’re applying for. Most UK car breakers fall under the Standard Rules Environmental Permit for car and vehicle dismantling, as set out on GOV.UK.

Bespoke permits are only required for unusual sites, high-risk operations (e.g. located near a nature reserve) and those that process over 25,000 tonnes/year. These situations are far less common.

Standard Rules Environmental Permit requirements for car breakers (UK, 2026)

Below, you’ll find the most up-to-date requirements for the environmental permit application:

Note: Applies to England. Refer to the GOV.UK ‘environmental permitting’ page for links to Wales, Scotland and Northern Ireland processes.

This means you must have all your other licenses and documents before applying for your authorisation to deal in ELVs as a breaker’s or scrap yard. To avoid delays in the application process, make sure you qualify for a standard permit (double-check the Environment Agency’s standard rules) and have everything else on the list set up.

3. Submit your application.

Once your forms and supporting documents are complete, you submit your application to the Environment Agency. You can email everything to PSC@environment-agency.gov.uk or post it to:

Permitting and Support Centre
Environmental Permitting Team
Quadrant 2
99 Parkway Avenue
Parkway Business Park
Sheffield
S9 4WF

Accuracy matters here. Missing information, incorrect documents and site details that don’t match reality will delay approval or result in rejection. There are also application and annual fees involved, which will be covered next.

4. Pay application fees.

The environmental permit application fee for Authorised Treatment Facilities is £3,926. You must pay this at the same time you submit your application by including it either in the email or post.

It’s important you’re certain on the exact charges you owe because if you’ve sent the wrong payment, the Environment Agency will reject the application or put it on hold. You can find the complete list of current charges here.

5. Site inspection and approval.

As part of the application process, the Environment Agency will carry out a site inspection before you’re allowed to operate.

During the visit, inspectors confirm that your physical infrastructure matches what you’ve submitted. That primarily includes:

• Sealed drainage systems
• Impermeable surfaces
• Appropriate depollution equipment.

They will also assess whether your Fire Prevention Plan can actually be implemented on site, paying close attention to waste stack sizes and separation distances.

If the inspection is satisfactory, the Environment Agency will issue your permit and formally approve your site as an Authorised Treatment Facility for end-of-life vehicles.

6. Receive your licence.

After the site inspection, you’ll be sent an inspection report, usually within a week. If everything passes, you’ll be issued an ATF 9 certificate, which confirms your approval as an Authorised Treatment Facility and allows you to open for business as a car breaker.

Your environmental permit is normally issued by email. The regulator will send a PDF copy of the permit along with a formal decision document to the email address listed in your application.

Once that’s sorted, the only thing you have left to do is print it. Although the permit is issued digitally, you must keep a copy visible at your site so it can be seen during unannounced inspections by Environment Agency officers.

After that, you’re officially a licensed car breaker in the UK.

How much does a car breaker’s licence cost?

The cost of a car breaker’s licence goes beyond a single application fee. It’s a combination of regulatory charges, supporting licences and setup costs you need to budget for upfront.

The main expense is the Environmental Permit application fee, which is £3,926 for an Authorised Treatment Facility. If approved, you’ll also pay an annual subsistence fee, typically £772 to £1,747+, depending on your site’s risk rating.

On top of that, you’ll need a scrap metal dealer’s licence, which usually costs £300 to £400 for a new application, and a waste carriers licence, which is priced between £105 and £184 for new registrations.

Since the application process and the setup process leading up to it are long and complicated, most operators also use consulting or advisory services to avoid mistakes, speed up approval and ensure the site is compliant from day one. If you want to avoid expensive mistakes or delays, budget £1,000 to £5,000+ for that as well.

What are the benefits of having a car breaker’s licence?

Holding a car breaker’s licence allows you to operate legally, protect your business from enforcement action and trade with confidence. It builds credibility with suppliers, insurers and customers while proving you meet strict environmental standards.

More importantly, it also unlocks access to end-of-life vehicles and compliant waste streams, which gives your waste management business a sustainable foundation for long-term growth and virtually endless demand (since Britons aren’t going to stop driving anytime soon).

Operating as a licensed car breaker brings several benefits:

• Ensure legal compliance: Holding a car breaker’s licence proves your business operates within UK vehicle recycling and waste management laws. If you have one, it means you meet regulatory standards for vehicle depollution and storage/disposal of hazardous materials. Staying compliant reduces your risk of fines and enforcement action, meaning you can operate your business confidently.
• Boost your environmental impact: A car breaker’s licence ensures vehicles are dismantled and recycled in an environmentally responsible way. It requires proper depollution, safe handling of hazardous materials and controlled waste storage, reducing pollution and landfill waste. By meeting these standards, licensed breakers support sustainable vehicle recycling and contribute to cleaner, greener industry practices.
• Increase business credibility: Holding an ATF licence shows your business operates according to nationally recognised legal and environmental standards. It signals professionalism and compliance to customers, suppliers and regulators. This builds compounding trust, improves confidence in your operations and makes it easier to form reliable partnerships across the vehicle recycling and scrap supply chain.
• Unlock new business opportunities: You might not realise it now, but the licence opens doors that unlicensed yards can’t access. Of course, it allows you to accept end-of-life vehicles legally, but that means you’ll be able to work with insurers and fleet operators and secure high-value, multi-year contracts. With a licence in place, you can bid on larger agreements, attract more customers and scale your operations with confidence.
• Streamline waste management: The car breaker licensing process brings structure and clarity to how waste is handled on site. It sets clear rules for depollution, storage and disposal, and complying means materials will move through the process efficiently. Well-managed waste reduces environmental risk, lowers long-term costs and supports sustainable operations that are easier to scale and maintain.

What are the common challenges in obtaining and maintaining a car breaker’s licence?

Obtaining a car breaker’s licence is a complicated process, and keeping it requires you to comply with continuously changing safety and environmental requirements.

As an operator, you’ll have to navigate through detailed paperwork, strict environmental regulations and preparing a site that passes inspection. Once you’re permitted, you’re committed to conditions that must be met every day.

Careful planning, accurate documentation and consistent site management are essential to overcome these challenges and maintain your licence long term.

Here’s a closer look at the problems you’ll run into as a licensed (or soon-to-be-licensed) car breaker:

• Complex application process: The application process is detailed and leaves little room for error. You have to complete several forms, knowing ahead of time that you meet eligibility criteria. You’ll also need to submit site-specific documents that accurately reflect how your yard operates. The EA reviews every aspect of the process against strict regulatory standards. Incomplete or incorrect information, or filling in the wrong application, will delay approval. So accuracy and attention to detail are essential from the outset.
• Compliance with environmental and legal standards: Holding a car breaker’s licence means you must depollute vehicles correctly, store fluids and hazardous waste safely, use licensed waste carriers (and, in many cases, be one yourself), keep accurate waste transfer records for a minimum of 3 years and comply with Scrap Metal Dealer requirements such as ID checks and payment rules. These regulations change over time, and failing to keep up can be costly. Most breaches carry fines of up to £5,000 or unlimited penalties for serious non-compliance.
• Passing site inspections and audits: Site inspections and audits are a critical part of being licensed. Inspectors assess your physical setup, including sealed drainage, impermeable surfaces, depollution equipment and safe waste storage. They also review fire prevention measures, operating procedures and record-keeping. Keeping the site consistently compliant is essential, as poor standards lead to enforcement action, suspension and in serious cases a loss of your licence.
• Ongoing maintenance of compliance: You must continuously meet permit conditions, pay several thousand pounds in ongoing fees, monitor site operations and stay aligned with changes in environmental and waste regulations. Regular reviews, staff training and record checks are essential, and you’ll probably need to hire a compliance team for this. But on the flip side, this does keep your business operational and helps you avoid fines, enforcement action or licence revocation.

What are the legal and environmental compliance requirements for car breakers?

Car breakers meet strict legal and environmental requirements to maintain their licenses in the UK. This includes holding the correct environmental permit, complying with waste disposal and recycling laws and following Scrap Metal Dealers Act regulations. 

These rules govern how vehicles are dismantled, depolluted and tracked. Adhering to them is essential for lawful operation and responsible vehicle recycling.

This is what ‘legal and environmental compliance’ means in practice:

• Waste management and disposal regulations: All fluids such as oil, fuel and coolant must be fully removed and stored in sealed containers. Batteries, airbags and contaminated parts must be handled as hazardous waste and sent to licensed facilities. Waste transfers must be documented and only carried out by registered waste carriers. Following these rules stops excessive pollution and protects you from regulatory enforcement action.
• Environmental permits and Authorised Treatment Facility (ATF) standards: Car breakers must hold an environmental permit and operate as an ATF to dismantle vehicles. The permit sets conditions for depollution, storage, drainage and waste handling, while ATF standards ensure end-of-life vehicles are processed safely and responsibly. Maintaining these standards is essential for legal compliance, environmental protection and running a credible, lawful vehicle recycling business.
• Compliance with scrap metal dealer laws: Car breakers must also comply with scrap metal dealer laws to trade legally. This includes holding a scrap metal dealer’s licence, verifying every seller’s identity and address, keeping detailed transaction records for a minimum of 3 years and paying by traceable methods (e.g. bank transfer) only. And metal parts have to be handled and sold through lawful channels. Compliance with the Scrap Metal Dealers Act 2013 ensures responsible scrap handling, reduces the risk of fraudulent activity from sellers and buyers and protects your business from serious legal consequences.
• Proper handling and recycling of end-of-life vehicles (ELVs): Proper handling of end-of-life vehicles means dismantling cars in a controlled, regulated way to minimise environmental harm. Vehicles must be fully depolluted, with oils, fuels, coolants, batteries and airbags removed before further processing. Reusable parts should be safely recovered, while remaining materials are recycled through approved channels. Following ELV recycling standards is both a legal requirement and a key way to reduce pollution, conserve resources and operate responsibly within the vehicle recycling industry.

What licenses are required to run a car breaker’s yard?

Running a car breaker’s yard legally requires several licences working together. The car breaker’s licence, formally an Environmental Permit (or waste management licence in Scotland and Northern Ireland), authorises vehicle dismantling and waste activities. You’ll also need a scrap metal dealer licence and waste carrier licence.

Holding all of the following is essential for compliant, lawful operation:

• Car breakers licence: A car breaker’s licence refers to the legal approval needed to operate a vehicle dismantling site. It authorises the acceptance, depollution and dismantling of end-of-life vehicles under waste management regulations. Without it, breaking cars is illegal, making this licence essential for lawful and compliant operations.
• Environmental permit: An environmental permit is what people are talking about when they say ‘car breaker’s licence’. It authorises your site to operate as an ATF that depollutes, dismantles and recycles ELVs legally. This permit is essential for preventing environmental harm and staying compliant with UK waste and environmental laws.
• Scrap metal dealer licence: This licence is required to legally buy and sell scrap metal in the UK. It comes with strict obligations, including verifying seller identity, keeping detailed transaction records and following payment and reporting rules under the Scrap Metal Dealers Act. Holding this ensures your scrap trading is lawful, transparent and protected from enforcement action associated with the Act.
• Waste carrier licence: A waste carrier licence is required if you transport waste to or away from your car breaker’s yard. It ensures waste is moved legally, with proper documentation and traceability, in line with waste transport regulations. Without it, moving vehicle parts or hazardous waste off-site is unlawful and will result in enforcement action.

How to find a licensed car breaker’s yard

Finding a licensed car breaker matters for both legal protection and environmental responsibility. Using an unlicensed yard can leave you exposed to fines, improper disposal and unresolved vehicle liability.

You can check whether a breaker is licensed by searching public registers held by the Environment Agency, SEPA in Scotland or DAERA in Northern Ireland. This will also confirm their scrap metal dealer licence, and reputable yards will openly share their ATF and permit details.

When you find a car breaker near you, always verify their credentials before proceeding. A properly licensed breaker ensures vehicles are handled legally, safely and in line with environmental standards.