Thanks for your advice guys, the workshop will be the unused downstairs section of a family members industrial unit so I wont have rent to pay until i start making some money. Also, my mums fiance happens to be an accountant, and my brother is an expert in web design so everything is falling into place :-)
Thank you Rogue, i will look into public and product liability insurance too. Purchased my first lathe today - Harrison M300. Lovely machine!