HM Revenue and Customs has tried to clear up confusion about changes it has made to mileage rates for company car drivers.

Last month, it announced new advisory mileage rates for company car drivers who do not receive free fuel, increasing the payment level for larger engined cars, but leaving smaller vehicles alone.

The move angered fleets, which said it sent out completely the wrong message to the industry about using smaller, more fuel-efficient cars.

The HMRC has now added a detailed explanation of how the rates were created to fend off criticism.

  • For details, visit http://www.hmrc.gov.uk/worksheets/p11dws6.pdf.