Microsoft 365 Price: UK Business Pricing Guide 2025
Microsoft 365 Business plans for UK businesses range from £4.60/user/month (Business Basic) to £16.90/user/month (Business Premium) on annual commitment. Enterprise plans run from £30.20 (E3) to £47.80 (E5). This guide compares all 2025 UK prices across plans so you can choose the right option for your organisation.
Ollie Hill-Haimes
Sales Director
Microsoft 365 UK Pricing at a Glance (2025)
All prices below are per user per month, on an annual commitment, excluding VAT. Microsoft 365 subscriptions are priced in GBP for UK businesses.
Business Plans (up to 300 users)
- Microsoft 365 Business Basic — £4.60/user/month
- Microsoft 365 Business Standard — £9.60/user/month
- Microsoft 365 Business Premium — £16.90/user/month
Enterprise Plans (no user limit)
- Microsoft 365 E3 — £30.20/user/month
- Microsoft 365 E5 — £47.80/user/month
Frontline Worker Plans
- Microsoft 365 F3 — approximately £7.20/user/month
Standalone Teams Plans
- Microsoft Teams Essentials — approximately £3.40/user/month
- Microsoft Teams Free — £0 (with limitations)
What Each Price Point Gets You
Business Basic — £4.60/user/month
The entry-level paid plan. Includes Teams (full meeting features), Exchange Online (50GB mailbox), OneDrive (1TB), SharePoint, and web-based Office apps (Word, Excel, PowerPoint in browser). Does not include installed desktop Office applications.
Suitable for: businesses that work primarily in a browser, don't need Office installed locally, and have straightforward security requirements.
Business Standard — £9.60/user/month
The most widely purchased plan for UK SMEs. Adds full Office desktop installations (Word, Excel, PowerPoint, Outlook, OneNote) on up to 5 devices per user. Also includes Teams Webinars and Microsoft Bookings. All Business Basic capabilities are included.
Suitable for: most office-based UK businesses where staff need Office apps installed on their computers.
Business Premium — £16.90/user/month
Adds enterprise-grade security to the Standard plan: Microsoft Defender for Business (endpoint protection), Intune (device management), Azure AD Premium P1 (conditional access), and Microsoft Purview data protection. Recommended for businesses in regulated sectors or those handling sensitive client data.
Suitable for: businesses with data security requirements, those pursuing legal/financial/healthcare organisations, and any business that has experienced or is concerned about cybersecurity incidents.
Microsoft 365 E3 — £30.20/user/month
Enterprise plan providing unlimited Office installs, 100GB Exchange mailbox with unlimited archiving, litigation hold, eDiscovery, Windows Enterprise licence, and Azure AD Premium P1. Required for organisations above 300 users or those needing advanced compliance capabilities.
Microsoft 365 E5 — £47.80/user/month
Microsoft's premium plan, adding Defender for Endpoint P2, Defender for Identity, Azure AD Premium P2 (PIM), Teams Audio Conferencing, Power BI Pro, and advanced eDiscovery. Appropriate for security-mature organisations with comprehensive threat protection requirements.
Annual vs Monthly Pricing
The prices above are based on annual commitment (billed monthly). Monthly rolling subscriptions cost approximately 20% more per user. Microsoft also offers annual prepay (paying the full year upfront), which is the same per-unit cost as annual monthly billing.
For most established businesses, annual commitment is the right choice. Monthly rolling licences are useful for covering temporary staff, contractors, or seasonal hiring without locking in cost for a full year.
Add-On Costs
Several capabilities are not included in the base plans and require add-ons:
- Teams Phone / Calling Plan — approximately £8-12/user/month for UK domestic PSTN calling
- Microsoft 365 Backup (native) — Microsoft launched its own backup service in 2024; third-party backup solutions remain the more common choice
- Power BI Pro — approximately £8/user/month (included in E5)
- Microsoft Defender for Endpoint P2 — available as a standalone add-on for E3 tenants wanting endpoint EDR without upgrading to E5
VAT
All Microsoft 365 prices quoted in this guide are exclusive of VAT. UK businesses pay 20% VAT on top of the listed prices. Microsoft's invoices show the VAT amount separately.
AMVIA provides Microsoft 365 licences for UK businesses alongside managed IT support. Our team can recommend the right plan mix for your organisation and handle procurement, setup and ongoing management.
Unsure Which Microsoft 365 Plan Gives You the Best Value?
AMVIA reviews Microsoft 365 requirements for UK businesses and recommends the right plan — ensuring you get what you need without paying for what you don't.
Frequently Asked Questions
Microsoft 365 Business Basic at £4.60/user/month is the cheapest paid business plan. It includes Teams, Exchange email with a 50GB mailbox, OneDrive (1TB), SharePoint and web-based Office apps. For businesses that don't need Office installed on their computers, it is a cost-effective starting point.
No. Microsoft sets regional prices, and UK plans are published in GBP rather than converted from US dollars. UK prices are typically somewhat higher than the USD equivalent after currency conversion, reflecting Microsoft's regional pricing decisions. Always compare against Microsoft's UK pricing page, not the US one.
No. Microsoft's published UK business prices are exclusive of VAT, and the 20% UK VAT is added to your invoice and shown separately. When comparing total cost of ownership across vendors, compare ex-VAT prices throughout so the figures are consistent.
Microsoft's list prices are largely fixed, but volume discounts are available through Enterprise Agreements for large organisations (typically 500+ users). CSP providers such as AMVIA can offer bundle pricing that combines licences with support at an effective saving versus buying each separately. For most SMEs, the list prices are the prices.
Microsoft increased Microsoft 365 prices for UK businesses in March 2023, with rises of approximately 11–22% depending on the plan, reflecting currency adjustments. The figures in this guide reflect current 2025 list pricing. Microsoft periodically revises regional pricing, so confirm the current rate before purchasing.
Business Premium at £16.90/user/month is the default recommendation for UK SMEs that handle client data. It bundles Defender for Business, Intune device management, conditional access and Purview data protection into the licence, so security is built in rather than bolted on later. Larger or compliance-heavy estates may need E5.
Related Reading
Microsoft 365 Business Plans | Compare Plans & Pricing
Detailed comparison of the three Microsoft 365 Business plan tiers.
What Is the Price of Microsoft Teams? | 2025 Pricing Guide
Teams pricing specifically: free, standalone and bundled plan options.
Microsoft 365 Business Premium | Features & Pricing
Is Business Premium worth the extra cost? Features and value assessment.