VAT rounding down-but it doesn't' work?!

Can anyone shed any light on this please......

My tutor and my textbook (Osborne) both tell me that VAT should always be rounded down. So how do you explain this;


Net value £704.88

VAT @20% is £140.976, so rounded down to £140.97

Gross value is £704.88 x 1.2= £845.856, so rounded up to £845.56

But..........Net (704.88) + VAT (£140.97)= £845.85! It's a penny different!

Help please


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