You will require a licence if you are a breaker's yard where vehicles are broken down for parts or scrapping, or where written-off vehicles are restored to road-worthy condition. Separate regulations apply to general Scrap Metal Dealers.
The following types of business qualify as a breakers yard:
Breaking vehicles down to scrap for recycling or disposal
Taking parts out of vehicles so that they can be used again
Buying up written-off vehicles and repairing them to the point where they can be driven again
Alternatively, download a Breaker's Yard Licence Application Form
For handling parts (but never whole vehicles) the fee is £40; in all other cases the fee is £70.
How to pay
This subject is covered by the Vehicles (Crime) Act 2001. For full details please see the Office of Public Sector Information Website.