Cutting down an existing tank sounds good to me.
You can also consider making a custom tank (which I shouldn't even bring up, because I just don't get along with metal tanks. However, it works for OTHER PEOPLE quite well!), or mounting the tank on the inboard side.
If you've got almost enough fuel in an existing tank and you're flying on regular glow fuel, you can add up to 2 ounces / gallon of white gas. That'll increase your fuel economy by about 10%, which is the difference between sometimes crapping out in the clover vs. always having at least six laps to spare. In the US you'd use Coleman lantern fuel or Zippo lighter fluid. I don't know what the equivalent brand names would be in England or Oz or wherever you are, but it's basically straight-run petroleum distillate that's too light to be diesel fuel -- you know, the stuff they used to put in cars and call "gasoline", but definitely not the stuff that they put in cars and call "gasoline" today.