The tax man cometh. So here are a few ways to save cash

The clock is ticking for everyone to get their tax affairs in order before the end of the tax year, which is just four weeks from today, but for most purposes this fiscal year will end the day before because it is a Friday. As 5 April is a Saturday, it may be too late to act by then, although some tax measures have a grace period.

Fiona Ormonde, an unemployed former airline executive, recently bought into the Invesco Perpetual Isa Corporate Bond fund to use her £7,000 individual savings account (Isa) tax allowance before the end of the tax year. Ms Ormonde, 38, from Portsmouth, Hampshire, is looking to save long-term because she is due to this year, plans to have children and wants money put aside for this.

"I usually take out an Isa most years, to be able to save tax," she says. "I use a financial adviser, who tells me the best thing to do." But, after 15 years working for British Midland Airways, Ms Ormonde took voluntary redundancy and flew to South America for a few months last year, so by the time she returned time was pressing if she wanted to use her Isa.

Thousands of other people are checking to see what they can do to cut their tax bill before 5 April. Jason Butler, managing director of Bloomsbury Financial Planning, says: "Although one must be careful not to let the tax tail wag the financial planning dog, so to speak, for private individuals there are many useful ways they might reduce overall liability."

John Whiting, tax partner at the accountant PricewaterhouseCooper and a leading personal tax expert, says: "Aside from the year-end deadline, this is an ideal excuse to look at your tax arrangements to make sure you aren't missing anything, even if you don't actually have to do very much."

These are the main areas to consider in the next four weeks:

Tax credits

If you have had a child born on or since 6 April last year, you can claim a children's tax credit worth up to £1,049, or £529 for an older child. That is the amount by which your tax bill will be cut, but you have to fill in a claim form, PDF 52K. Phone 0845 300 1036 for a copy. You have up to five years to claim.

But that credit is being replaced in the new tax year by a child tax credit. Although it is for families earning up to a combined £66,000 a year, it tapers swiftly after earnings rise above £19,000.

And the working families' and disabled persons' tax credits are being replaced next month by a working tax credit, for families on low incomes with savings of less than £8,000.

There is only three months' grace to claim these credits before you lose them, so phone 0845 300 3900 and ask for form TC600.

Income tax

If you are a basic-rate taxpayer and think you may pay the higher rate after 5 April, it may be worth closing any savings accounts and opening new ones in the new tax year, to make clear the transition.

Pension tax relief

All individuals under 75 get basic rate tax relief on gross contributions up to £3,600. And consider salary sacrifice for personal contributions, particularly as national insurance contributions will be increasing from 6 April. Ask your employer if you can make a salary sacrifice, which involves taking a lower salary in return for higher pension contributions paid to an occupational or personal pension scheme. This saves the employer and employee NI contributions on the salary sacrificed. But be careful not to lose state benefits if your annual earnings are below £30,420.

Insurance bonds

If your tax rate is likely to change in the new tax year and you have an investment bond you intend to cash, check whether you would be better to cash it before or after 5 April.

Gifts to charity

Gifts to UK-registered charities are deemed to be paid net of basic rate tax, if the giver can certify they are a taxpayer. The charity can gross up the net gift by the basic rate of tax (22 per cent) and reclaim the tax from the Inland Revenue.

For the giver, additional tax relief is 18 per cent on that part of the gross gift which falls into income subject to higher-rate tax.

Capital gains tax (CGT)

If you have capital gains, a rarity this past year outside the housing market, it may be worth selling enough assets to use up your individual allowance of £7,700 of tax-free gains.

Married couples can transfer assets with potential gains from the tax-paying spouse to the spouse paying no or little tax. But do ask an accountant to calculate the taper relief on capital gains, and deduct losses arising in this tax year before working out your gains.

Individual savings account (Isa)

Up to £7,000 of assets can be sold and repurchased within a Maxi stocks-and-shares Isa, the practice known as bed & Isa. The money may be held in cash for several months, provided the eventual intention is to invest in stocks and shares. Or up to £3,000 can be held in a mini-cash Isa without the obligation to invest.

Retirement relief

This is the last year of retirement relief for those who sell all or part of their own business and are 50 or over (unless they are retiring due to ill health).

The relief is also available on selling assets owned personally which have been used by the business. The first £50,000 of any chargeable gain is exempt from tax and all or part of gains between £50,000 and £200,000 are reduced by half. Transferring assets to a discretionary trust can also trigger the relief if you do not want to sell.

Enterprise investment scheme (EIS)

An investor can reduce tax liability by 20 per cent of an investment in an Inland Revenue-approved EIS, with a minimum of £500 per company and a maximum £150,000 a year per investor. There is no CGT payable on disposal of shares after three years, provided the EIS initial income tax relief was given and not withdrawn.

Any EIS shares sold at a loss can be set against capital gains or income in the year of disposal. Remember, this concession is given to encourage people to invest in risky companies.

Venture capital trust (VCT)

You can put up to £100,000 into a VCT, which invests in small companies. The managers of the VCT have three years in which to choose companies to invest in and during this time often place the money into cash, gilts or bonds.

You have to hold a VCT for a minimum of three years to benefit from the tax reliefs and, as with EIS, the catch is that the investments can be risky but at least they are spread around several companies.

Inheritance tax

Consider making the maximum annual tax-free gift of £3,000, which can also be carried back to the 2001-02 tax year if you have not already used them. And up to £250 may be gifted to any number of recipients each tax year.