A Guide to O365 Business Pricing in the UK for 2026

Figuring out the pricing for Microsoft 365 business plans in the UK means looking beyond the sticker price. It's about what you get for your money. For 2026, the entry-level Microsoft 365 Business Basic plan kicks off at £5.75 per user per month, while the all-singing, all-dancing Business Premium will set you back £18.10. The best fit for your business comes down to a simple trade-off: balancing cost against the tools and security you genuinely need.

Decoding Microsoft 365 Business Pricing for 2026

Choosing a Microsoft 365 plan isn’t just about comparing monthly fees. It's a strategic decision that directly affects how your team works, how secure your data is, and what your IT budget looks like for the year ahead. For the small and medium-sized professional services firms we work with across Dorset, Somerset, and Hampshire, getting this right is fundamental to running a smooth operation.

Microsoft’s core offerings are built for organisations with up to 300 staff and are broken down into four main plans:

• Microsoft 365 Business Basic
• Microsoft 365 Business Standard
• Microsoft 365 Business Premium
• Microsoft 365 Apps for Business

Each one serves a different purpose. Business Basic is your web-and-mobile-only starter pack. Business Standard adds the full, familiar desktop versions of apps like Word and Excel. Then you have Business Premium, which layers on advanced security and device management—a must-have for professional services firms handling sensitive client information, such as law practices or financial advisers.

Recent UK Price Adjustments

Microsoft gave its UK pricing a shake-up on 1 July 2026, which was one of the most significant changes SMEs have had to navigate in years. The entry-level Business Basic plan jumped 17.3%, from £4.90 to £5.75 per user, per month. Likewise, Business Standard went up by 12.1%, from £10.30 to £11.55. Business Premium, on the other hand, held steady at £18.10.

To put that into perspective, an accountancy firm in Wiltshire with 20 employees on Business Standard is now looking at an extra annual cost of over £300. We’ve covered the full details of this 2026 price hike for UK businesses and what it means strategically.

This latest price change really highlights why you need to review your licensing regularly. A plan that was a great deal last year might not be the most cost-effective choice today, especially as your team grows or your needs evolve.

To give you a clearer picture, here’s a quick summary of where things stand now.

UK Pricing for Microsoft 365 Business Plans in 2026

This table provides a snapshot of the core Microsoft 365 Business plans, their current monthly UK prices (per user, excluding VAT), and the type of business or user they are best suited for.

Plan Name	Monthly Price (per user, ex. VAT)	Ideal For
Business Basic	£5.75	Teams needing only web and mobile access to apps and email.
Business Standard	£11.55	Users who require the full, installable desktop Office applications.
Business Premium	£18.10	Businesses requiring advanced security and device management.
Apps for Business	£8.60	Individuals who only need desktop apps and cloud storage.

As you can see, the jump from Basic to Standard is significant, but it’s often a necessary one for businesses where staff live inside Word, Excel, and Outlook. The real value conversation, however, happens when deciding between Standard and Premium.

Comparing Microsoft 365 Business Plans

Deciding on the right Microsoft 365 Business plan goes beyond simple pricing. It’s about matching licences to your daily workflows, device mix and security requirements.

In practice, most professional services organisations weigh three main factors:

• Application Access (Web only versus full desktop)
• Collaboration Tools (Teams, SharePoint, OneDrive)
• Built-in Security (from basic MFA to advanced device management)

Let’s explore what each plan really delivers for UK businesses, using real-world scenarios to guide your choice.

Application Access: Web Vs Desktop

Microsoft 365 Business Basic offers web and mobile versions of Word, Excel and PowerPoint—no desktop installations. This can suit a small marketing consultancy in Hampshire where team members juggle client calls, check email and update shared files on the move.

By contrast, Business Standard includes the full, installable Office apps. An accountancy firm in Dorset, for example, relies on the power of desktop Excel for complex financial models and running macros. The web-only editors simply wouldn’t cut it when you’re auditing year-end figures.

Apps for Business is the middle ground: you get the desktop apps but must provide your own email and Teams. It’s ideal if you already host Exchange elsewhere but still want the very latest Office features on every PC.

Collaboration And Communication Tools

All four plans include Microsoft Teams, SharePoint and OneDrive, yet their integration depth varies. Business Basic and Standard supply a robust hub for chat, meetings and real-time co-authoring.

Imagine an architectural practice in Somerset:

• Office-based architects craft detailed blueprints in desktop AutoCAD and manage project timelines in desktop Excel (Business Standard).
• Site supervisors use their tablets to access these plans from SharePoint and upload progress photos via the Teams mobile app (Business Basic).
  This hybrid use of Business Standard and Basic keeps costs down without sacrificing efficiency.

Advanced Security And Device Management

Microsoft 365 Business Premium builds on Standard by adding Intune and Azure Information Protection, plus advanced compliance capabilities.

For any firm handling client data—law practices, financial advisers or healthcare providers—remote wipe and device-level policy enforcement are non-negotiable.

For instance, a solicitor using their personal iPad can only access encrypted case files if the device meets the firm's security criteria. If that iPad is lost, Intune lets the firm's IT administrator remove all corporate data remotely, protecting client confidentiality. To dive deep into these controls, read our detailed guide on Microsoft 365 Business Premium.

Even after the latest price changes, Premium’s stable monthly fee makes its advanced features a compelling investment.

Core Feature Comparison Across Microsoft 365 Business Plans

Below is a breakdown of how each plan stacks up on essential capabilities. Use this as a quick reference when mapping features to your team’s needs.

Feature	Business Basic	Apps for Business	Business Standard	Business Premium
Desktop Office Apps	Web & Mobile Only	Installable Desktop Apps	Full Desktop & Web	Full Desktop & Web
Email Hosting (Exchange)	Included	Not Included	Included	Included
Microsoft Teams	Chat & Meetings	Chat & Meetings	Chat & Meetings	Chat & Meetings
OneDrive Storage	1 TB per User	1 TB per User	1 TB per User	1 TB per User
SharePoint Online	Team Sites & Sharing	Not Included	Team Sites & Sharing	Team Sites & Sharing
Advanced Security Tools	Basic MFA	Basic MFA	Basic MFA	Intune & Azure Information Protection
Device Management	No	No	No	Yes

This table clarifies the core differences so you can align features with real-world requirements.

When you factor in add-ons—additional storage, eDiscovery packs, compliance tools—and migration or licensing fees, selecting the right plan becomes a strategic move. Small teams with straightforward collaboration needs may find Basic or Standard more than sufficient. Organisations dealing with sensitive data will see Premium’s advanced security as essential.

For a deeper dive into pricing scenarios by business size and use case, as well as guidance on buying direct versus through a managed provider like SES Computers, take a look at our full comparison guide.

Budgeting for Hidden Costs and Add-Ons

The monthly licence fee you see on Microsoft’s website is really just the starting point. It’s the baseline. For many businesses I work with, especially in professional services, their day-to-day needs quickly outgrow the standard features included in the box. That’s why it’s so important to factor in potential add-ons and what some call "hidden" costs right from the beginning. It's the only way to build an accurate budget and avoid nasty surprises down the line.

To be fair, these expenses aren't intentionally hidden by Microsoft. They simply pop up when your specific operational or compliance needs push beyond the limits of your chosen plan. Understanding where these costs might appear gives you a much more realistic picture of your true investment in Microsoft 365.

When Standard Storage Is Not Enough

Every Microsoft 365 Business licence comes with a seemingly generous 1TB of OneDrive storage per user. For most typical office roles, that's more than enough. But for some sectors, that 1TB limit can become a real headache, and fast.

Imagine a marketing agency in Dorset that works with high-resolution video files for client campaigns. A single project can easily eat up hundreds of gigabytes. For a small team of five video editors, their combined 5TB of storage could be exhausted within a year, leaving them with a tricky decision to make.

Their options are to either jump up to a more expensive Enterprise plan or start buying additional storage. For example, you can extend SharePoint storage, but it comes at a per-gigabyte monthly cost that really starts to add up. This is a perfect example of a necessary add-on that needs to be in the budget from day one.

Compliance and eDiscovery Requirements

If you're in a regulated industry like law or finance, the standard security features just won't cut it. A law firm in Somerset handling sensitive client data, for instance, has to meet strict data retention and discovery rules. If they receive a legal request, they must be able to search across every mailbox, document, and message for specific keywords. This capability is called eDiscovery.

This is a critical point: eDiscovery is not included in Business Basic or Standard. You either have to upgrade to a higher-tier plan like Microsoft 365 E3 or buy a specific compliance add-on. Forgetting to budget for this can leave a firm non-compliant and seriously exposed.

On top of that, managing your licences correctly is vital for staying compliant. To get a better sense of the risks, it’s worth understanding the pitfalls of software licensing audits for professional services firms.

Specialised Applications and Advanced Security

Beyond the core Word, Excel, and Outlook trio, your team might need specialised tools that aren’t included in any of the standard Business plans. These almost always come with their own separate subscription fees.

• Microsoft Project: Absolutely essential for project managers in engineering or construction needing proper Gantt charts and resource planning. A Project Plan 1 licence starts at around £7.50 per user per month.
• Microsoft Visio: The industry standard for professional diagrams, flowcharts, and office layouts. A Visio Plan 1 licence will add about £3.80 per user per month to your bill.
• Microsoft Defender for Business: This is included in Business Premium, which is great. But if you’re on Business Standard, you might need to buy this advanced threat protection separately to properly secure your devices against modern malware and ransomware.

The principles of identifying needs and budgeting for them are universal. If you want to see how this applies to other complex systems, this practical budget guide for enterprise platforms offers some great insights.

The Critical Need for Third-Party Backup

This is probably the most overlooked cost of all: a proper backup solution. There's a common and dangerous misconception that because your data is in the cloud with Microsoft, it's automatically backed up. It isn't.

Microsoft operates on a shared responsibility model. In simple terms, they promise to keep their servers running, but you are responsible for protecting your own data from accidental deletion, corruption, or cyberattacks.

For example, if an employee accidentally deletes a crucial client folder from SharePoint, or a ransomware attack encrypts all your company emails, getting that data back without a dedicated, third-party backup service is often impossible. A managed IT partner can set up an automated, secure backup that covers your entire Microsoft 365 environment, giving you a vital safety net. This isn’t an optional extra; it's a non-negotiable operational cost.

Which Microsoft 365 Plan Is Right For Your Business?

Knowing the features of each Microsoft 365 plan is one thing, but figuring out which one actually fits your business is a different challenge altogether. The best approach is to look past the technical specs and focus on what you need to get work done every day. By looking at how different professional services businesses in the UK use these tools, you can match the o365 business pricing to real value for your company.

Let's walk through a few common scenarios. We'll see how the right licence choice directly impacts business goals, security posture, and day-to-day work.

Scenario One: The Security-Conscious Accountancy Firm

First up, a Dorset-based accountancy firm with 20 staff. Every day, they handle incredibly sensitive client data—payroll, tax returns, and private company accounts. For them, security isn't just a "nice-to-have"; it’s a core legal and professional duty under regulations like GDPR.

• What they need: Rock-solid security for laptops and mobiles that access client files. They also need advanced email protection to encrypt messages and prevent sensitive data from accidentally being emailed to the wrong person.
• Recommended Plan: Microsoft 365 Business Premium.
• Why it makes sense: Business Standard would give them desktop apps like Excel and Outlook, but it completely misses the advanced security features that are non-negotiable for an accountancy practice. Business Premium brings Microsoft Intune to the table, which lets the firm manage and secure all devices. They can enforce encryption and remotely wipe a lost or stolen laptop to protect client data. It also includes Azure Information Protection, allowing them to classify documents as 'Confidential', ensuring only authorised people can ever open them. For this firm, the extra monthly cost for Premium is a small price to pay for compliance and peace of mind.

Scenario Two: The Hybrid Architectural Practice

Now, let's imagine an architectural practice in Somerset with a mixed team. They have 15 office-based staff—architects, surveyors, and administrators—plus 30 site supervisors who are always on the move. Their technology needs couldn't be more different.

The smartest licensing strategy isn't always putting everyone on the same plan. A hybrid approach, where you mix and match licences based on job function, can lead to significant cost savings without hurting productivity.

This is where a nuanced understanding of the plans really pays off.

• What they need: The office team needs the full desktop versions of Microsoft Office to create detailed project plans and reports. Site-based staff, however, just need email, calendars, and access to site plans on their phones or tablets. They almost never use a traditional computer.
• Recommended Plan: A hybrid model. Business Standard for the 15 office staff and Business Basic for the 30 site supervisors.
• Why it makes sense: This blended approach perfectly aligns cost with actual use. Giving the more expensive Business Standard licences to office workers equips them with the powerful desktop tools they rely on. For the team on-site, Business Basic provides everything they need—professional email, SharePoint for documents, and Teams for communication—all through web and mobile apps. This stops the company from wasting money on desktop software that would sit unused by half its workforce, directly improving their bottom line.

Scenario Three: The Agile Hampshire Consultancy

Finally, picture a small, dynamic consultancy in Hampshire with just three partners. They are constantly on the go, working from client offices, their homes, or co-working spaces. Their priorities are clear: reliable communication, a professional brand, and secure, simple file sharing.

• What they need: A professional email address on their own domain, a central hub to store and collaborate on client proposals, and a solid platform for video meetings. They don’t need complex device management and are perfectly happy using web-based applications.
• Recommended Plan: Microsoft 365 Business Basic.
• Why it makes sense: Business Basic is the ideal, no-nonsense choice here. It delivers a 50GB mailbox with their custom domain, 1TB of OneDrive storage per user for all their documents, and Microsoft Teams for client calls. Since they are happy using the web and mobile versions of Word and Excel, paying more for Business Standard would be pointless. For a lean, modern business like this, Basic delivers all the essential tools to operate professionally without a single penny wasted.

Why You Should Use a Managed IT Partner

Picking the right Microsoft 365 plan is a crucial first step, but how you buy and manage those licences is just as important. You could go direct to Microsoft, and for some, that's fine. But partnering with a managed IT services provider offers strategic advantages that go far beyond a simple transaction. It’s about shifting your mindset from just buying software to actively getting the most out of your investment for better performance, security, and cost-efficiency.

For professional services firms in Dorset, Somerset, and the surrounding areas, that local expertise can make all the difference. A good partner acts as your dedicated technology adviser, making sure your licensing choices line up perfectly with where your business is heading, both today and in the future.

This relationship gives you a level of personal service and strategic advice that a huge corporation simply can't offer a small or medium-sized business. Instead of being stuck navigating call centres, you have a single point of contact who genuinely understands your operations.

Expert Migration and Ongoing Support

One of the first, most tangible benefits is a pain-free migration. Shifting an entire company's emails, files, and workflows into the Microsoft 365 environment is a complex job with plenty of potential pitfalls. A skilled IT partner manages the whole process, guaranteeing a smooth switch with zero downtime so your team can keep working without interruption.

That hands-on support continues long after the initial setup. When problems pop up—whether it's an Outlook glitch, a query about SharePoint permissions, or a security alert—you have a team of experts ready to sort it out fast. It’s a world away from relying on generic online forums or waiting in a support queue.

Proactive Licence Management and Cost Savings

Understanding o365 business pricing is one thing; actually optimising it is another challenge entirely. A common problem we see is 'licence sprawl', where businesses are paying for more subscriptions than they need or have assigned expensive licences to staff who only use the basic features.

A managed partner actively stops this from happening. By running regular licence audits, they make sure you’re only paying for what you genuinely use, which can lead to significant annual savings.

Practical Example: Licence Audit Savings

We recently worked with a professional services firm in Wiltshire that was overspending on its Microsoft 365 licences. After a thorough audit, we identified 15 underutilised Business Premium licences assigned to staff who only needed Business Standard. By reallocating these licences, we saved the client over £1,400 per year—money that was immediately reinvested into other critical IT projects.

This proactive management turns your software licensing from a fixed overhead into a flexible, optimised asset that grows and shrinks with your business.

A Single Point of Contact for All IT Needs

The true value of a managed partner really clicks when you look at the bigger picture. Your Microsoft 365 setup doesn't exist in a bubble; it’s tied into your network, your cybersecurity defences, and your phone systems.

Working with a partner like SES Computers means you have one trusted contact for everything IT.

• Cybersecurity: Integrating your Microsoft 365 security tools with your wider network protection.
• Connectivity: Making sure your internet connection can comfortably handle the demands of cloud services.
• Backup and Recovery: Putting a solid disaster recovery plan in place for your Microsoft 365 data.
• Telephony: Integrating systems like 3CX VoIP with Microsoft Teams for truly unified communications.

This consolidated approach builds a cohesive and resilient IT foundation. For a deeper dive into this model, you can learn more about what managed IT services entail and how they help businesses grow. Ultimately, a partnership ensures all your technology works together seamlessly, freeing you up to focus on what you do best: running your business.

Making the Right Licensing Decision

Choosing the right Microsoft 365 plan isn't just an IT task; it’s a strategic business decision. Getting it right means taking everything we’ve discussed and turning it into a straightforward checklist that reflects how your business actually operates.

Before you make a final call, take a moment to weigh your needs against three key pillars: security, applications, and growth. Do you handle sensitive client data that makes advanced security a must-have? Do your teams rely on the full desktop versions of Office apps, or are web-based tools enough? And critically, where do you see your business in two years? You need a plan that can grow with you.

A Final Summary of Each Plan

To help bring it all together, let’s quickly recap the core purpose of each plan.

• Business Basic: This is your cost-effective starting point. It’s perfect for teams needing professional email, cloud storage, and collaboration tools, especially if they work primarily on mobile devices or don't need installed desktop software.

• Business Standard: This is the workhorse for most organisations. If your staff spend their days in the full desktop versions of Word, Excel, and PowerPoint, this plan is the backbone of their productivity.

• Business Premium: Think of this as the all-in-one solution for any business that takes data protection and device management seriously. It delivers enterprise-grade security tools at a price point that makes sense for smaller and medium-sized businesses.

Your final choice should align perfectly with your operational reality. Paying for features you don't use is just as wasteful as not investing in the tools that could protect or grow your business.

Thinking beyond Microsoft 365, it's often helpful to understand the wider world of software subscriptions. Seeing how other companies structure their plans can offer a fresh perspective. You can gain insights into various software licensing and pricing strategies to broaden your understanding of the market.

Ultimately, the goal is to get the maximum return from your investment. If you’d like a personalised consultation to ensure you select and implement the perfect plan for your needs, our team is here to help.

Frequently Asked Questions

We get asked a lot of the same questions by UK businesses trying to get their heads around Microsoft 365 pricing and licensing. Here are some of the most common ones, with practical answers to help you make the right call for your company.

Can I Mix Different Microsoft 365 Plans?

Yes, you absolutely can, and frankly, you should. Mixing and matching licences is one of the smartest ways to control your costs. There’s no rule that says everyone in your company needs the same plan.

For example, a law firm might assign Business Premium licences to its partners and solicitors who handle highly sensitive client data, needing its advanced security features. Meanwhile, the administrative and support staff, who primarily need email and basic Office apps, could be on the much more affordable Business Basic plan. This kind of flexible approach means everyone gets the tools they need without you paying for features they'll never use.

What's the Difference Between an Annual and Monthly Commitment?

It really boils down to cost versus flexibility. If you opt for an annual commitment, you're agreeing to pay for a full year of licences upfront or on a monthly basis for a year's term. Microsoft rewards this with a significant discount, usually around 15-20%, compared to the rolling monthly price. This is ideal for a stable business with a predictable number of employees.

A monthly commitment, on the other hand, gives you the freedom to scale up or down as your team changes. This is perfect for businesses with seasonal workers or those in a rapid growth phase. You pay a bit more for that adaptability, but it prevents you from being locked into paying for licences you no longer need. The right choice depends entirely on your cash flow and how predictable your headcount is.

Is It Difficult to Migrate to Microsoft 365?

The short answer is, it can be. Moving a company's entire history of emails, files, and data over to Microsoft 365 is a complex job. If it’s not managed perfectly, you're looking at risks like data loss or business-halting downtime. A proper migration requires meticulous planning, data validation, and a carefully phased switch-over to make sure the transition is seamless.

While you can attempt a DIY migration, the risks are substantial. A single misconfigured setting could lead to lost emails or gaping security holes, creating problems that are far more expensive to fix down the line than getting it right the first time.

The safest bet is to work with an experienced IT partner. They’ve done this hundreds of times before and can handle all the technical heavy lifting. This guarantees a smooth, zero-downtime migration, ensuring your data is transferred securely and your team can hit the ground running without any disruption.

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For expert guidance on selecting the right licences and managing a seamless migration to Microsoft 365, get in touch with SES Computers. Discover how our managed IT services can optimise your investment and support your business goals. Find out more at https://www.sescomputers.com.