To ask about Tax and earnings into an ISA

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Basically, I'm currently caring for my mum full time so I am on benefits, before this I worked for the NHS but had to leave to support my DM, Im lucky as my manager has told me I always have a job to go back to but that isn't anywhere in the near future unfortunately.

Being on benefits means I don't have much money to save, I want to start making children's personalised items, I will make around £20 profit from each item and I want to put this straight into an ISA account for my daughter, she wont be able to touch the money till she is 18, So I wont be making any money myself I want to do it to benefit her future.

How will this work with Tax and my 'working' status? I don't want it to effect my benefits I'm scraping by as it is, i get £60 odd a week carets and £40 of that goes on fuel to get to my DM.

You can earn up to about £120 pw without affecting carers allowance, but it's a strict cut off and if you go even a penny above the amount, you lose your carer's allowance, so you need to be clear about the rules here.

Your DM may be entitled to attendance allowance, or other benefits, so would it be possible for some of these to be used to pay your costs in looking after her, such as paying for your fuel?

All standard rate taxpayers or lower earners has a £1000 a year interest allowance, so for almost everyone, ISAs aren't necessary as it is likely you will get more interest in a standard savings account. You only need to worry about using up your ISA allowance if you have a lot of money to put into savings, which it doesn't sound like it applies to you.

Maybe you would be best getting advice from CAB or someone else (not sure who) on you and your DMs benefit situation. Also additional caring support for help with washing, meals etc - I think this is arranged via the local council.