Insurance/tax implications of using a business asset at a home address?

I have a small furnishings business in the UK which I partly operate from my home address. My official business address is a virtual office mailbox which I have with a local company. I am considering buying a laser engraving machine which I would use in my garage. I need to know the house insurance/Council Tax implications of doing this e.g would I have to pay business rates etc. The house is actually owned by my dad, and he pays all the bills, although I live there also. Basically, I want to use the laser engraving machine in the garage because it saves me having to pay out for a commercial industrial unit.

If the engraving machine became damaged in a fire or was stolen, would it be covered by the normal house insurance. Also, if the engraving machine caused a fire (very unlikely) and damaged items within the property, would the insurance pay out.

Thanks Scott K for the answer. Say I did use the laser engraving machine just on a hobby basis, would I be able to make and develop items which later I might sell when I start up my business at a later date? Also, what if I used the machine just to develop items only e.g everything I made I did not go on to sell.
Finally, is there a maximum you can make and sell on a hobby basis before the insurance becomes invalid e.g surely you can make and sell some items, for instance, on e.bay before you have to start changing the insurance policy. Is it the case that as long as you don't sell items under a business name everything is OK?

Once you start selling, it becomes a business. There is a change of use......but to be really , really sure, discuss with a commercial insurance broker.

As for your location: if you are creating noise issues or traffic issues...you may have neighbour issues.

Hope this helps.

Legally, you would have changed the risk for the insurer and would have voided your contract. If the unit were for a hobbyist, it would be covered.