Microsoft 365 is widely used by UK businesses for email, productivity, collaboration, cloud storage and security.

For many organisations, it is an essential part of their IT setup. However, the range of available plans can make it difficult to understand which option offers the right balance of features and cost.

Microsoft’s current UK pricing varies depending on the plan and whether Microsoft Teams is included.

The prices below are based on Microsoft’s annual subscription pricing and exclude VAT. Prices were checked against Microsoft’s official Microsoft 365 business pricing page.

Microsoft 365 Business Basic: £5.40 per User per Month

Microsoft 365 Business Basic is designed for businesses that mainly use Microsoft 365 online.

The plan includes:

• Web and mobile versions of Word, Excel, PowerPoint and Outlook
• Professional business email
• 1 TB of OneDrive cloud storage per user
• Microsoft Teams
• Microsoft Bookings, Planner and Forms
• Business-class cloud services
• Core identity and access management

Microsoft lists Business Basic at £5.40 per user per month when paid yearly, excluding VAT.

For example, 10 users would cost £54 per month before VAT, based on the annual subscription price.

View Microsoft’s current Business Basic pricing:

Microsoft 365 Business Basic pricing

If your business needs help setting up email, accounts or cloud services, see our Microsoft 365 support service.

Microsoft 365 Business Standard: £10.80 per User per Month

Business Standard includes the features in Business Basic, along with desktop versions of Microsoft Office applications.

Your employees get access to:

• Word
• Excel
• PowerPoint
• Outlook
• OneDrive
• Microsoft Teams
• Professional business email
• Additional Microsoft business applications

Microsoft currently lists Business Standard at £10.80 per user per month, paid yearly and excluding VAT.

For 10 users, this works out at £108 per month before VAT.

Business Standard is often suitable for businesses where employees need to install Office applications on their computers rather than relying solely on web and mobile versions.

View Microsoft’s current Business Standard pricing:

Microsoft 365 Business Standard pricing

Microsoft 365 Business Premium: £19.10 per User per Month

Business Premium is designed for organisations with greater security and device management requirements.

Alongside the productivity features found in Business Standard, Premium includes advanced security and management capabilities.

These include:

• Advanced device management
• Threat protection
• Information protection
• Identity and access management
• Microsoft Intune
• Additional security and compliance features
• Desktop, web and mobile Office applications
• 1 TB of OneDrive storage per user
• Microsoft Teams

Microsoft’s current UK pricing page lists Business Premium at £19.10 per user per month when paid yearly, excluding VAT.

For 10 users, this works out at £191 per month before VAT.

View Microsoft’s current Business Premium pricing:

Microsoft 365 Business pricing

Business Premium can be particularly useful when combined with a structured cybersecurity strategy, especially for businesses managing remote workers and company-owned devices.

Microsoft 365 Plans With and Without Teams

Microsoft also offers versions of its business plans without Microsoft Teams.

The annual prices listed by Microsoft for plans without Teams include:

• Business Basic without Teams: £4.20 per user per month
• Business Standard without Teams: £8.30 per user per month
• Business Premium without Teams: £14.40 per user per month

These prices exclude VAT.

The most suitable option depends on how your employees communicate and collaborate.

Businesses that rely on Teams for meetings, messaging and collaboration may prefer a plan that includes it. Organisations using another communication platform may find a plan without Teams more suitable.

You can compare the available options on Microsoft’s Microsoft 365 plans without Teams page.

Microsoft 365 Pricing Comparison

Business Basic

£5.40 per user per month

Business Basic includes:

• Business email
• Web and mobile Office apps
• OneDrive storage
• Teams
• Basic cloud collaboration

Business Standard

£10.80 per user per month

Business Standard includes:

• Everything in Business Basic
• Desktop Office applications
• Full access to Word, Excel, PowerPoint and Outlook
• Cloud collaboration
• Teams

Business Premium

£19.10 per user per month

Business Premium includes:

• Everything in Business Standard
• Advanced security
• Device management
• Information protection
• Stronger identity and access controls
• Microsoft Intune

Prices exclude VAT and are based on Microsoft’s annual subscription pricing. Check Microsoft’s current pricing information before purchasing because Microsoft updates pricing and product packaging periodically.

Is Microsoft 365 Too Expensive for Small Businesses?

The cost of Microsoft 365 needs to be considered alongside the services included within each plan.

Without Microsoft 365, a business might need separate solutions for:

• Business email
• Cloud storage
• Office software
• Video meetings
• File sharing
• Collaboration
• Security
• Device management

Microsoft 365 brings many of these services together under one platform.

A five-person business using Business Basic at £5.40 per user per month would pay £27 per month before VAT.

A 20-person business using Business Standard at £10.80 per user per month would pay £216 per month before VAT.

The overall cost therefore depends on the number of users and the features employees need.

For a broader view of technology costs, read our guide to IT support for small businesses.

Are There Hidden Microsoft 365 Costs?

Microsoft 365 subscription prices cover the features included within each licence.

Additional costs might apply if your business needs products or services outside your chosen plan.

These might include:

• Microsoft 365 Copilot
• Additional Microsoft licences
• Additional security products
• Third-party applications
• Specialist Microsoft services
• IT support and management

You should review your licensing requirements before purchasing additional products.

A Microsoft 365 licence also does not replace every aspect of IT management. Your business still needs to consider cybersecurity, device management, backups, user support and wider IT infrastructure.

Our guide to business IT security covers some of the additional protections businesses should consider alongside Microsoft 365.

Managing Microsoft 365 Costs

Businesses often continue paying for licences belonging to former employees or users who no longer need specific features.

Regular licence reviews can help you:

• Review every user licence
• Remove unused accounts
• Match employees to the correct licence
• Review Teams requirements
• Check whether desktop Office applications are required
• Review additional Microsoft services
• Monitor licence changes as your business grows
• Review your security requirements regularly

Choosing the cheapest licence for everyone is not always the best approach.

Different employees have different requirements. Your finance team might need desktop Excel, while another employee might only need email and web applications.

A licence review helps align your Microsoft 365 spending with how your employees work. Our Microsoft 365 consultancy service can help you review licensing, security and configuration requirements.

Microsoft 365 Security and Your Business

Microsoft 365 also plays an important role in business security.

Cyber attacks frequently target business email accounts and employee credentials.

Microsoft 365 includes security features such as identity and access controls, spam and malware protection and, depending on the plan, advanced security and device management capabilities.

Business Premium provides additional security and management features, including advanced device management and protection against phishing and cyber attacks.

Your Microsoft 365 licence should therefore form part of a wider cybersecurity strategy. You can also review Microsoft’s official Microsoft 365 security information for further details.

Microsoft 365 Is Not a Complete IT Strategy

Microsoft 365 provides a large range of business tools, but your wider IT environment still needs attention.

You should also consider:

• Cybersecurity
• Device management
• Data backup
• Employee security training
• IT support
• Microsoft 365 administration
• Business continuity
• Access control
• Software updates

This is where working with an experienced IT provider becomes valuable.

Our managed cybersecurity services can help protect users, devices and business data alongside your Microsoft 365 environment.

How Support Stack Helps With Microsoft 365

At Support Stack, we help UK businesses manage Microsoft 365 alongside their wider IT and cybersecurity requirements.

Our services include Microsoft 365 support, managed IT services and cybersecurity solutions.

We help businesses with:

• Microsoft 365 setup and migration
• User and licence management
• Microsoft 365 support
• Cybersecurity
• Device management
• Microsoft 365 administration
• IT support
• Ongoing technology management

Whether you are moving to Microsoft 365, reviewing your current licences or looking for ongoing support, our team can help you choose an approach suited to your business.

Visit Support Stack:

Support Stack

You can also contact Support Stack to discuss your Microsoft 365 requirements.

Frequently Asked Questions

How Much Is Microsoft 365 Business Basic in the UK?

Microsoft 365 Business Basic currently costs £5.40 per user per month when paid yearly, excluding VAT, for the plan with Teams. Check Microsoft’s official Business Basic pricing before purchasing.

How Much Is Microsoft 365 Business Standard in the UK?

Microsoft 365 Business Standard currently costs £10.80 per user per month when paid yearly, excluding VAT. You can confirm the latest price on Microsoft’s Business Standard pricing page.

How Much Is Microsoft 365 Business Premium in the UK?

Microsoft 365 Business Premium currently costs £19.10 per user per month when paid yearly, excluding VAT. See Microsoft’s Microsoft 365 business pricing page for the latest information.

Does Microsoft 365 Include Teams?

Some Microsoft 365 business plans include Teams, while Microsoft also offers versions without Teams at different prices. Check Microsoft’s plans without Teams before choosing your licence.

How Can I Reduce My Microsoft 365 Costs?

Review your licences regularly, remove unused accounts and ensure employees have licences suited to their actual requirements. A Microsoft 365 licence review also helps identify unnecessary subscriptions and additional services.

Need Help With Microsoft 365?

Choosing a Microsoft 365 plan is only one part of managing your business IT.

Support Stack helps UK businesses manage Microsoft 365, cybersecurity and wider IT requirements.

Visit Support Stack to find out how Support Stack can support your business, or contact our team to discuss your requirements.