Over 40 debt collection companies are said to have registered for HM Revenue & Customs’ (HMRC’s) epic £1.5bn debt tender, with the government body now facing a race to process the bids before its April deadline.

The bidding, which closed on 3 March, attracted great interest from the market with between 40 and 50 companies said to have entered the competition. The contract, which could be worth a total of £70m in fees, is for up to 10 agencies to enter a two-year arrangement.

HMRC now faces a tight deadline following the heavy response. The government has earmarked 12 April as having a shortlist bidders in place although market observers think the volume of interest may put pressure on that deadline.

HMRC currently has a contract with four debt collection agencies, Commercial Collections Services, Credit Solutions, iQor and Fairfax Solicitors, to collect £140m of debt as part of a deal that runs until this year.