Last updated: April 2026 | Reviewed by: Connection Technologies managed IT team
🔹 Quick Answer — Which Microsoft 365 Business Plan Should You Choose?
For most UK small businesses, Microsoft 365 Business Standard at £4.90 per user per month is the best value plan. It includes desktop Office apps, Exchange email, Teams, SharePoint and 1 TB OneDrive storage — everything a team of 5–200 needs without overpaying for enterprise security features.
If your business handles sensitive client data or operates in a regulated sector, Business Premium at £17.60/user/month adds Intune device management, Defender for Business and conditional access policies.
Our pick for most UK SMBs: Microsoft 365 Business Standard — get a quote from Connection Technologies and save vs. buying direct from Microsoft.
Choosing the right Microsoft 365 business plan can feel overwhelming. With multiple tiers, add-ons and licensing models, it is easy to overspend or end up with features your team never uses.
For UK SMBs the stakes are higher still — you need reliable email, collaboration tools and security that scales without blowing the budget.
This guide breaks down every Microsoft 365 subscription tier available to UK businesses in April 2026, compares pricing, explains what each plan includes and shows you how to get the most from your investment.
Whether you are migrating from on-premise Exchange, upgrading from a personal plan or switching from Google Workspace, you will find the answers here.
What Is Microsoft 365 for Business?
Microsoft 365 (formerly Office 365) is a cloud-based productivity and security platform designed for businesses with up to 300 users.
Instead of buying standalone software licences, your business pays a monthly or annual Microsoft 365 subscription per user that bundles email, office apps, cloud storage, device management and cyber-security tools into a single package.
For businesses, Microsoft offers four core plans — Business Basic, Business Standard, Business Premium and Microsoft 365 Apps for Business — each designed for different team sizes and security requirements.
Enterprise plans (E3, E5) are also available for organisations with more than 300 users.
How Much Does Microsoft 365 Business Cost in 2026? — UK Pricing Compared
Below is a side-by-side comparison of the four main Microsoft 365 business plans with updated April 2026 UK pricing. All prices are per user per month (annual commitment, excluding VAT).
| Feature | Business Basic | Business Standard | Business Premium | Apps for Business |
|---|---|---|---|---|
| UK price (per user/month) | £4.90 | £9.90 | £17.60 | £9.90 |
| Annual cost (per user) | £58.80 | £118.80 | £211.20 | £118.80 |
| Desktop Office apps (Word, Excel, PowerPoint, Outlook) | Web & mobile only | ✅ Full desktop | ✅ Full desktop | ✅ Full desktop |
| Exchange Online email | 50 GB mailbox | 50 GB mailbox | 50 GB mailbox | ❌ Not included |
| Teams, SharePoint, OneDrive | ✅ (1 TB storage) | ✅ (1 TB storage) | ✅ (1 TB storage) | OneDrive only (1 TB) |
| Microsoft Intune (MDM) | ❌ | ❌ | ✅ | ❌ |
| Defender for Business (endpoint security) | ❌ | ❌ | ✅ | ❌ |
| Entra ID (Azure AD) Premium | ❌ | ❌ | ✅ (P1) | ❌ |
| Azure Information Protection | ❌ | ❌ | ✅ | ❌ |
| Copilot available | Add-on (£24/user/mo) | Add-on (£24/user/mo) | Add-on (£24/user/mo) | Add-on (£24/user/mo) |
| Max users | 300 | 300 | 300 | 300 |
| Best for | Remote / web-first teams | ⭐ Most UK SMBs | Security-conscious firms | Teams that need apps only |
Prices sourced from the Microsoft UK commercial price list, April 2026. Actual cost may vary depending on commitment term and partner discounts. Request a quote from Connection Technologies for partner pricing below RRP.
Which Microsoft 365 Plan Is Right for Your Business?
Microsoft 365 Business Basic — Best for Budget-Conscious Teams
At £4.90 per user per month, Business Basic is the most affordable entry point. You get Exchange Online email with a 50 GB mailbox, Teams for video calls and chat, SharePoint for document collaboration and 1 TB of OneDrive cloud storage per user.
The catch: you only get web and mobile versions of Word, Excel and PowerPoint — no desktop installs.
Best for: Businesses where staff primarily use web browsers or mobile devices, remote-first teams and organisations that already own perpetual Office licences.
Microsoft 365 Business Standard — The Sweet Spot for Most SMBs
Business Standard adds full desktop Office apps (Word, Excel, PowerPoint, Outlook, Access, Publisher) to everything in Basic.
At £9.90 per user per month, it is the most popular plan among UK small businesses because it covers productivity, email and collaboration without the complexity of enterprise licensing.
Best for: Companies with 5–200 employees who need desktop Office apps, professional email and Teams. This is the plan we recommend to most of our clients.
Our pick: Microsoft 365 Business Standard is the best all-round Microsoft 365 plan for UK SMBs in 2026.
Microsoft 365 Business Premium — Maximum Security
Premium includes everything in Standard plus a full security stack: Microsoft Intune for mobile device management, Defender for Business for endpoint protection, Entra ID P1 for conditional access and identity protection, and Azure Information Protection for data-loss prevention.
At £17.60 per user per month it is a significant step up in cost, but for businesses handling sensitive data it can replace several standalone security tools that would cost far more individually.
Best for: Regulated industries (finance, legal, healthcare), businesses with BYOD policies and any organisation that takes cyber security seriously.
Microsoft 365 Apps for Business — Desktop Apps Without Email
This plan gives you the full desktop Office suite and 1 TB OneDrive storage but no Exchange email, no Teams and no SharePoint.
It is priced the same as Business Standard (£9.90/user/month) and exists for businesses that already have email elsewhere — for example, those using Google Workspace for email but needing desktop Word and Excel.
What Are the Pros and Cons of Microsoft 365 for Business?
✅ Pros
- Predictable per-user pricing — easy to budget as you scale up or down
- Always up to date — automatic updates mean no manual patching or version sprawl
- Integrated security — Premium tier replaces standalone antivirus, MDM and identity tools
- Industry standard — virtually every UK business, client and supplier uses Office formats
- 99.9% uptime SLA — financially backed reliability guarantee from Microsoft
- Scales to 300 users — covers most UK SMBs without jumping to complex Enterprise licensing
- Copilot AI add-on — access to AI productivity tools across Word, Excel, Outlook and Teams
❌ Cons
- Ongoing subscription cost — you never own the software; stop paying and you lose access
- Plan complexity — four business tiers plus enterprise options can cause confusion and overspend
- Copilot is expensive — at £24/user/month on top of your plan, AI features add up fast
- Admin overhead — configuring Exchange, SharePoint permissions and security policies requires expertise
- Migration can be disruptive — moving from on-premise Exchange or Google Workspace needs careful planning
- 300-user cap — businesses outgrowing this limit must upgrade to pricier Enterprise E3/E5 plans
- Internet dependent — cloud-first design means poor connectivity impacts productivity
How Much Does Microsoft 365 Cost for a UK Business? — Budget Examples for 2026
The Microsoft 365 cost for a typical UK business depends on the plan and team size. Here is a quick reference using April 2026 pricing:
| Team size | Business Basic | Business Standard | Business Premium |
|---|---|---|---|
| 10 users | £49/mo (£588/yr) | £99/mo (£1,188/yr) | £176/mo (£2,112/yr) |
| 25 users | £122.50/mo (£1,470/yr) | £247.50/mo (£2,970/yr) | £440/mo (£5,280/yr) |
| 50 users | £245/mo (£2,940/yr) | £495/mo (£5,940/yr) | £880/mo (£10,560/yr) |
| 100 users | £490/mo (£5,880/yr) | £990/mo (£11,880/yr) | £1,760/mo (£21,120/yr) |
All figures exclude VAT. Prices based on annual commitment, April 2026.
Buying through a Microsoft partner (also called a CSP — Cloud Solution Provider) rather than directly from Microsoft often unlocks volume discounts, consolidated billing and dedicated support.
As a Microsoft partner, Connection Technologies can also bundle your 365 licences with managed IT support, so you get a single monthly invoice and one team to call when something goes wrong.
What Is Included in Every Microsoft 365 Business Plan?
Regardless of the tier you choose, every Microsoft 365 business subscription includes:
- Microsoft Teams — video meetings, chat, channels and phone system integration (except Apps for Business)
- OneDrive for Business — 1 TB cloud storage per user with version history and sharing controls
- SharePoint Online — intranet sites, document libraries and workflow automation (except Apps for Business)
- Microsoft 365 admin centre — centralised user management, licence assignment and security settings
- 99.9% uptime SLA — Microsoft guarantees financially backed availability
- Automatic updates — always on the latest version with no manual patching
- Multi-device access — use your subscription on up to five PCs/Macs, five tablets and five phones per user
- Microsoft Loop and Planner — collaborative task management and dynamic content blocks included in all plans from 2026
Should You Buy Microsoft 365 Direct or Through a Managed IT Partner?
You can purchase Microsoft 365 licences in two ways:
- Direct from Microsoft — you pay list price, manage your own admin console and handle support tickets with Microsoft directly.
- Through a Microsoft CSP partner — a managed IT provider like Connection Technologies purchases licences on your behalf, often at a discount, and handles setup, migration, security configuration and ongoing support.
For businesses without a dedicated IT team, the partner route is almost always the better option. Here is why:
- Lower cost — CSP partners can access volume pricing that is not available on the Microsoft website
- Expert setup — DNS records, Exchange migration, SharePoint architecture and security policies are configured correctly from day one
- Single invoice — combine your Microsoft 365 licences, business broadband, VoIP phone system and managed IT support into one monthly bill
- UK-based support — speak to a real person who knows your environment, not a global call centre
- Proactive security — your partner monitors for threats, applies conditional access policies and manages Defender for Business on your behalf
Our recommendation: Unless you have an in-house IT team comfortable managing Exchange Online, Entra ID and Intune policies, work with a Microsoft partner. The cost is typically the same or lower, and the time saved is significant.
How Does Microsoft 365 Compare to Google Workspace for UK Businesses?
Google Workspace is the main alternative to Microsoft 365 for cloud-based business productivity. Here is a quick comparison of the most popular mid-tier plans:
| Feature | Microsoft 365 Business Standard | Google Workspace Business Standard |
|---|---|---|
| UK price (per user/month) | £9.90 | £10.44 |
| Desktop Office apps | ✅ Full desktop suite | ❌ Web/mobile only |
| Cloud storage per user | 1 TB (OneDrive) | 2 TB (Google Drive) |
| Exchange Online (50 GB) | Gmail (50 GB equivalent) | |
| Video conferencing | Teams (300 participants) | Google Meet (150 participants) |
| Best for | Businesses needing desktop apps & Exchange | Web-first teams comfortable with Google Docs |
Our pick: For most UK businesses, Microsoft 365 Business Standard wins because desktop Office apps are still essential for client-facing documents, complex spreadsheets and Outlook-based workflows. Google Workspace suits fully web-based teams, but compatibility issues with .docx and .xlsx files remain a frustration.
What Is a Managed Microsoft 365 Setup Service?
A managed Microsoft 365 setup is a done-for-you deployment where a specialist IT partner handles every step of your migration and configuration — so your team can focus on running the business rather than wrestling with DNS records and PowerShell scripts.
🔧 Connection Technologies — Managed M365 Setup Service
Our managed IT team handles Microsoft 365 deployments for UK businesses every week. Here is what is included:
- Licence procurement — we source your M365 licences at competitive CSP partner rates
- Tenant configuration — domain verification, DNS setup, custom email domains and admin policies
- Email migration — seamless migration from on-premise Exchange, POP/IMAP, Google Workspace or another provider with zero data loss
- Security hardening — MFA enforcement, conditional access policies, anti-phishing rules and Defender configuration (Premium plans)
- SharePoint & OneDrive setup — folder structure, permission groups and file migration from local servers or Dropbox
- Teams deployment — channel structure, external access policies and integration with your VoIP phone system
- User onboarding & training — we set up every user account and provide remote training sessions so your team hits the ground running
- Ongoing managed support — optional monthly support plan for user adds/removes, troubleshooting and security monitoring
Whether you are a 5-person start-up or a 200-person company with complex compliance needs, we tailor the deployment to your requirements.
What Are the Most Common Microsoft 365 Mistakes UK Businesses Make?
After deploying hundreds of Microsoft 365 tenants for UK businesses, we see the same mistakes repeatedly:
- Buying Premium when Standard is sufficient — unless you need Intune or Defender, the extra £7.70/user/month is wasted. Start with Standard and upgrade individual users who need security features.
- Not enabling MFA — multi-factor authentication is free with every M365 plan but shockingly many businesses leave it switched off. This is the single biggest security gap we see.
- Ignoring shared mailboxes — shared mailboxes (info@, sales@, support@) are free and do not require a licence. We regularly find businesses paying for full user licences for generic email addresses.
- Skipping email migration planning — a botched Exchange migration can mean lost emails, broken calendar links and days of disruption. Professional migration tools and staging reduce downtime to near zero.
- Not configuring SPF, DKIM and DMARC — without these DNS records, your business emails are more likely to land in spam and your domain is vulnerable to spoofing attacks.
- Paying for Copilot before optimising what you have — at £24/user/month, Copilot is a significant investment. Many businesses have not even configured SharePoint properly, which limits Copilot’s usefulness.
Our recommendation: If any of the above sounds familiar, request a free Microsoft 365 audit from our managed IT team. We will review your current setup and identify where you are overspending or underprotected.
Frequently Asked Questions About Microsoft 365 Business
Can I switch between Microsoft 365 plans?
Yes. You can upgrade or downgrade between Business Basic, Standard and Premium at any time through the Microsoft 365 admin centre (or your CSP partner can handle this for you). Changes take effect at your next billing cycle.
Is Microsoft 365 the same as Office 365?
Microsoft rebranded Office 365 to Microsoft 365 in April 2020. The core apps (Word, Excel, PowerPoint, Outlook) are the same, but Microsoft 365 plans include additional security, compliance and device management features that were not part of the original Office 365 branding.
Do I need Microsoft 365 if I already have Teams free?
The free version of Teams has significant limitations: no meeting recordings longer than 60 minutes, no Exchange email integration, no SharePoint and limited admin controls. For any business use beyond casual chat, a paid Microsoft 365 plan is necessary.
Can I mix different Microsoft 365 plans within my business?
Yes. A common approach is to put most staff on Business Standard and only assign Business Premium licences to users who handle sensitive data or need device management. This keeps costs down while maintaining strong security where it matters.
What happens to my data if I cancel Microsoft 365?
Microsoft retains your data for 90 days after cancellation. During this period you can reactivate your subscription and recover everything. After 90 days, data is permanently deleted. We always recommend exporting a backup before cancelling.
How long does a Microsoft 365 migration take?
For a typical UK SMB with 10–50 users, a managed migration from on-premise Exchange or Google Workspace takes 1–2 weeks from planning to completion. The actual mailbox cutover usually happens over a weekend to minimise disruption. Contact us for a migration timeline specific to your setup.
Why Choose Connection Technologies for Microsoft 365?
Connection Technologies is a UK-based Microsoft CSP partner and managed IT provider. We do not just sell licences — we design, deploy and manage your entire Microsoft 365 environment so it works properly from day one.
- Competitive CSP pricing — often cheaper than buying direct from Microsoft
- UK-based support team — real people who answer the phone, not chatbots
- End-to-end service — from licence procurement and migration to ongoing security monitoring
- Bundle with connectivity — combine M365 with business broadband, VoIP and business mobiles for a single monthly invoice
- Free initial audit — we review your current setup and recommend the right plan mix before you spend a penny
Ready to Get Microsoft 365 Set Up Properly?
Tell us your team size and current setup. We will recommend the right plan, quote competitive pricing and handle the entire migration.
Updated April 2026. All pricing reflects Microsoft UK commercial price list as of April 2026, excluding VAT. Microsoft 365, Teams, Exchange, SharePoint, OneDrive, Intune, Defender, Entra ID and Copilot are trademarks of Microsoft Corporation.
Related Guides
Deploying 365 on company phones? Follow our step-by-step Set Up Outlook & Teams on Business Mobiles →
Need help setting up Microsoft 365?
Connection Technologies is a Microsoft partner offering fully managed 365 deployment, migration and ongoing support for UK businesses. See our managed IT services →
Related Reading
More from the Connection Technologies blog.