Just to clear up a point or two !!!
It is a legal requirement for a licenced vehicle breaker/disposal/recycler to notify DVLA that a vehicle has been scrapped ( If they are the ones breaking it ) .
My local disposal site will not take a vehicle without a V5 or failing that, photographic proof of ID & proof of address.
That said .... As they are also a general scrap metal merchant, they are able to take the remains of a **pre-scrapped vehicle** as general scrap .... In this case, it would be up to the owner ( Person that acctualy scrapped the vehicle ) to notify DVLA.
Remember .... Honesty is the best policy .... Tell the scrapyard what you are doing & the reason why & you shouldn't run into any problems.
If the yard is anal to deal with....Find another yard
Right, i'll now duck for cover