Shed/workshop foundations?

I want to build a shed/workshop approximately 10ftx8ft, or maybe a little bigger. I think building it with concrete blocks would be the cheapest and most secure method (over a wooden shed), but I am concerned about the type of foundation it should have.

Could I build it onto a simple concrete base, say 6 or 8 inches thick, or should it have deeper foundations? I should mention that the shed would be within 2 or 3 feet of the fence between myself and next-door, and that their garden is about 18 inches lower than mine. The raised area of soil on my side is supported by the concrete panels at the base of the fence.

My concern is that if I used a simple concrete base, the fence panels would also be bearing the weight of the base + shed. Should I dig a trench for the shed foundations, say to the level of next-door's garden, concrete the bottom, then build up from there? Perhaps this way would be cheaper too as I would need less concrete? Thanks.

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Steve
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