The short answer
- Business plans (up to 300 users): Basic £5.40, Standard £10.80, Premium £16.90 per user a month on an annual subscription, ex VAT. Without Teams: £4.20, £8.30 and £14.40.
- Enterprise plans: Office 365 E1 £7.70, E3 £23.30, E5 £36.80; Microsoft 365 E3 £33.50, E5 £51.60, E7 £81.60. Frontline F1 £2.30 and F3 £7.70 (indicative).
- A monthly subscription costs 20% more than an annual one on the Business plans (Business Premium is £20.28 rather than £16.90); Microsoft lists only annual prices for Enterprise and Frontline. All Microsoft prices exclude VAT; add 20% for the amount on the invoice.
- Prices rose on 1 July 2026 for most plans (Business Basic from £4.60 to £5.40, Microsoft 365 E3 from £31.00 to £33.50). Business Premium and Office 365 E1 didn't change.
- Cheapest plan
- Microsoft 365 F1, £2.30 per user a month (indicative)
- Most common small-business plan
- Business Premium, £16.90 (£202.80 a year)
- Enterprise default
- Microsoft 365 E3, £33.50 (£402 a year)
- Monthly subscription
- 20% more than annual (Business plans)
- VAT
- not included in any Microsoft price; add 20%
- Prices
- Microsoft UK list, annual subscription (checked 23 October 2026)
Microsoft 365 Business plans (up to 300 users)
The Business plans are what most UK companies and professional firms buy. Microsoft allows up to 300 seats in total across Business Basic, Standard and Premium, so you can mix them but not go beyond 300 between them. Prices are per user a month, excluding VAT, for the standard annual subscription.
| Plan | With Teams | Without Teams | Monthly subscription | Per user a year | Inc. VAT (a month) |
|---|---|---|---|---|---|
| Business Basic | £5.40 | £4.20 | £6.48 | £64.80 | £6.48 |
| Business Standard | £10.80 | £8.30 | £12.96 | £129.60 | £12.96 |
| Business Premium | £16.90 | £14.40 | £20.28 | £202.80 | £20.28 |
| Apps for Business | £9.80 | n/a | – | £117.60 | £11.76 |
Monthly subscription is the month-to-month option you can cancel at any time; Microsoft lists it at 20% above the annual price. The Inc. VAT column is the annual price plus 20% VAT, so it happens to show the same figures: a monthly subscription with VAT on top is 44% above the annual ex-VAT price (Business Premium £24.34). Without Teams is the same plan with Teams removed; the FAQ at the end of this page explains why there are two versions. Apps for Business is the desktop, web and mobile apps with 1 TB of OneDrive, and has no email or Teams, so there is no separate version without Teams.
What the three main plans differ on, in one line each: Basic is email, Teams and the web apps; Standard adds the desktop apps; Premium adds device management and security (Intune, Entra ID P1, Defender for Business). The Business Premium vs Business Standard guide sets out the £6.10 difference in detail, and the Business Standard and Business Premium pages list everything each plan includes, its limits and its price for each way to pay.
Office 365 Enterprise plans
Office 365 E1, E3 and E5 have no user cap and contain the apps and cloud services only: no Windows licence, no Intune and no Defender for devices. Apps for Enterprise is the desktop apps alone.
| Plan | With Teams | Without Teams | Per user a year |
|---|---|---|---|
| Office 365 E1 | £7.70 | £5.20 | £92.40 |
| Office 365 E3 | £23.30 | £16.70 | £279.60 |
| Office 365 E5 | £36.80 | £30.20 | £441.60 |
| Apps for Enterprise | £13.70 | n/a | £164.40 |
Microsoft 365 Enterprise plans
The Microsoft 365 Enterprise plans bundle Office 365 with Windows Enterprise, Intune, Entra ID and Defender. E3 is the default for organisations above 300 users; E5 adds the advanced security, compliance, Teams Phone and Power BI Pro; E7 is the new top tier that adds Copilot, Agent 365 and the Entra Suite on top of E5.
| Plan | With Teams | Without Teams | Per user a year |
|---|---|---|---|
| Microsoft 365 E3 | £33.50 | £27.00 | £402.00 |
| Microsoft 365 E5 | £51.60 | £45.00 | £619.20 |
| Microsoft 365 E7 | £81.60 | £75.00 | £979.20 |
The E3 to E5 step is £18.10 per user a month, or £217.20 a year. Microsoft 365 E3 vs E5 works through when that pays and when E3 plus one of the add-on suites below is the cheaper route.
Frontline plans (F1 and F3)
Frontline licences are for shift, field and deskless workers who don't have a dedicated desk or device; Microsoft's terms define who qualifies. They are the cheapest licences in the range and usually the biggest saving in a renewal, because retail, care, logistics and manufacturing staff are often sitting on E3 or Business Standard.
| Plan | With Teams | Without Teams | Per user a year |
|---|---|---|---|
| Microsoft 365 F1 | £2.30 (indicative) | £1.92 (indicative) | £27.60 |
| Microsoft 365 F3 | £7.70 (indicative) | £6.90 (indicative) | £92.40 |
F1 gives Teams, a calendar without a mailbox and read-only Office on the web; F3 adds a 2 GB mailbox, the web and mobile apps and Windows Enterprise rights. Neither includes the desktop apps.
The Frontline prices are indicative: Microsoft's UK pages don't always show them, so these figures come from UK resellers. Confirm them with your licensing partner before you budget.
Add-ons, suites and Copilot
Most organisations add at least one of these on top of a base plan. Prices are per user a month on an annual subscription, excluding VAT.
| Add-on | Per user a month | Added to | What it is |
|---|---|---|---|
| Microsoft 365 Copilot | £23.10 | Any Business, Office 365, Enterprise or Frontline plan; from 1 December 2026, new licences need no Microsoft 365 plan | The full Copilot licence: Copilot in Word, Excel, PowerPoint, Outlook and Teams, grounded in your own files and mail. Until 30 November 2026 it is sold as an add-on that needs a qualifying Microsoft 365 plan, now named Microsoft 365 Copilot (add-on). From 1 December 2026 new purchases are of a Copilot licence that needs no Microsoft 365 plan, at the same price, and existing add-on subscriptions can keep renewing. Copilot still works only with the Microsoft 365 apps and services each user is licensed for. |
| Microsoft 365 Copilot Business | £16.10 (£13.80 promotional price, offer ends 31 December 2026) | Organisations with up to 300 users: with a Business plan until 30 November 2026; from 1 December 2026, new licences need no Business plan | Copilot in the Microsoft 365 apps for organisations with up to 300 users. The £13.80 price is a Microsoft promotion for annual subscriptions of 1 to 300 licences bought by 31 December 2026, offered to customers with an eligible Business plan. It applies to the first year only, so a renewal is at the £16.10 list price. On 1 December 2026 a Copilot Business licence that needs no Business plan replaces the add-on offer for new purchases, at the same list price, and the add-on stops being sold through resellers. Microsoft hasn't said whether the promotion carries over to the new licence. |
| Microsoft Teams Enterprise | £6.60 | Enterprise plans bought without Teams | Adds Teams back to a no-Teams Enterprise plan. |
| Microsoft Teams Phone Standard | £7.70 | Any plan with Teams | Cloud phone system; calling plans or operator connect are extra. Included in Office 365 E5 and Microsoft 365 E5. |
| Microsoft Defender Suite | £9.20 | Microsoft 365 E3 (or Office 365 E3 with EMS E3) | Defender for Endpoint P2, Defender for Office 365 P2, Defender for Identity and Defender for Cloud Apps. Microsoft's UK page also lists Defender for IoT, and its US page lists Entra ID P2. |
| Microsoft Purview Suite | £9.20 | Microsoft 365 E3 (or Office 365 E3 with EMS E3) | Advanced DLP and information protection, Insider Risk Management, eDiscovery (Premium), advanced audit, communication compliance. |
| Defender + Purview Suites | £11.50 | Business Premium | The Defender Suite and Purview Suite for Business Premium together; each on its own is £7.70. |
| Defender Suite or Purview Suite (Frontline) | £6.20 (indicative) | F1 or F3 | UK reseller price; both suites together £10.00. |
Business Standard and Business Premium with Copilot
| Bundle | With Teams | Without Teams |
|---|---|---|
| Business Standard with Copilot | £18.10 | £15.60 |
| Business Premium with Copilot | £24.60 | £22.10 |
Both bundles include Copilot Business. On Microsoft's UK pages the bundles are listed below the price of the plan plus the Copilot Business add-on, but check the terms before relying on that: the bundle prices are annual subscriptions, and the add-on's own £13.80 price is a promotion. Microsoft has run it since 1 December 2025 and extended it twice, now to 31 December 2026, for 1 to 300 licences alongside an active Business plan. The promotional price applies to the first year only, and a renewal goes back to £16.10. From 1 December 2026 new Copilot Business purchases are of a licence that needs no Business plan, at the same list price, and the add-on the promotion applies to stops being sold through resellers; Microsoft hasn't said whether the promotion carries over (Copilot without a Microsoft 365 plan).
Annual or monthly, and what the price leaves out
Microsoft offers three ways to pay for the same plan. An annual subscription paid yearly is the list price on this page. An annual subscription paid monthly spreads the same commitment over twelve payments; since 1 April 2025 Microsoft has charged 5% more for it than for paying yearly, with slight local variations for exchange rates and rounding (the 5% rule for annual subscriptions paid monthly). A monthly subscription lets you add, remove or cancel licences month by month, and on the Business plans Microsoft lists it at 20% more: Business Basic £6.48, Standard £12.96, Premium £20.28.
Every Microsoft price excludes VAT. If you can reclaim VAT the ex-VAT figure is your real cost; if you can't, add 20%. The Business table above includes an inc-VAT column for that reason.
Three other things the headline price leaves out. Calling plans for Teams Phone are extra on top of the Phone licence; Microsoft's Copilot pricing pages note "usage-based billing for select advanced AI features", so some agent and connector use is metered beyond the licence; and Microsoft's own backup, Microsoft 365 Backup, is billed per GiB of protected data through an Azure subscription, not per user.
Dynamics 365 apps such as Business Central, Sales and Customer Service aren't part of any Microsoft 365 plan and are licensed separately: their UK prices are in Dynamics 365 pricing in the UK.
What changed on 1 July 2026
Microsoft raised most commercial prices on 1 July 2026. New subscriptions pay the new price at once; existing subscriptions move to it at their first renewal after that date, so some organisations will see the increase for the first time in 2027. The previous UK prices come from UK reseller reports, because Microsoft's pages only ever show the current price.
| Plan | Before 1 July 2026 | Now | Change | Without Teams (before → now) |
|---|---|---|---|---|
| Business Basic | £4.60 | £5.40 | +£0.80 (+17%) | £3.40 → £4.20 |
| Business Standard | £9.60 | £10.80 | +£1.20 (+13%) | £7.10 → £8.30 |
| Business Premium | £16.90 | £16.90 | no change | £14.40 → £14.40 |
| Apps for Business | £8.10 | £9.80 | +£1.70 (+21%) | n/a |
| Office 365 E1 | £7.70 | £7.70 | no change | £5.20 → £5.20 |
| Office 365 E3 | £20.60 | £23.30 | +£2.70 (+13%) | £14.00 → £16.70 |
| Office 365 E5 | £34.10 | £36.80 | +£2.70 (+8%) | £27.50 → £30.20 |
| Apps for Enterprise | £11.70 | £13.70 | +£2.00 (+17%) | n/a |
| Microsoft 365 E3 | £31.00 | £33.50 | +£2.50 (+8%) | £24.40 → £27.00 |
| Microsoft 365 E5 | £49.00 | £51.60 | +£2.60 (+5%) | £42.40 → £45.00 |
| Microsoft 365 F1 | £1.73 | £2.30 | +£0.57 (+33%) | £1.35 → £1.92 |
| Microsoft 365 F3 | £6.20 | £7.70 | +£1.50 (+24%) | £5.30 → £6.90 |
Two things stand out. Business Premium and Office 365 E1 held their prices while everything around them rose, so the gap between Business Standard and Business Premium narrowed from £7.30 to £6.10, which strengthens the case for Premium for anyone with a company laptop. And the largest percentage rises were on the cheapest licences (F1 up a third, F3 up a quarter), which matters for organisations with hundreds of frontline staff even though the pounds per user are small.
For promotions that are ending, the next price review and other changes still to come, see what is changing next in Microsoft 365 licensing, with dates and Microsoft's sources.
Charity and education pricing
Eligible UK charities buy through Microsoft's nonprofit programme, which replaced its free Business Premium grant with a free Business Basic grant and deep discounts on the paid plans at renewals from 1 July 2025.
| Plan | Charity price | List price | Saving |
|---|---|---|---|
| Business Basic | Free (grant) | £5.40 | 100% (grant, up to 300 users) |
| Business Standard | £2.70 | £10.80 | 75% less |
| Business Premium | £4.20 | £16.90 | 75% less |
| Microsoft 365 E3 | £8.40 | £33.50 | 75% less |
| Microsoft 365 E5 | £20.60 | £51.60 | 60% less |
Also for eligible charities: the Defender and Purview suites at a 60% discount, Microsoft 365 Copilot at 15% off, and up to five Microsoft 365 F3 licences for volunteers for each paid E3 or E5 seat. Eligibility is validated by Microsoft and the licences are for paid staff.
Schools, colleges and universities buy Microsoft 365 A1, A3 and A5 through education partners. Microsoft publishes no UK list prices for them; the comparison tool shows what each education plan includes.
What a whole organisation pays
The per-user price matters less than the mix. These examples use the annual with-Teams prices above, excluding VAT, and show the same organisation licensed one plan for everyone against a mix matched to roles.
| Organisation | Per year (ex VAT) | Average per user a month |
|---|---|---|
| 10-person firm, everyone on Business Standard | £1,296 | £10.80 |
| 10-person firm, everyone on Business Premium | £2,028 | £16.90 |
| 50 staff: 35 Business Premium, 15 Business Basic | £8,070 | £13.45 |
| 50 staff, everyone on Business Premium | £10,140 | £16.90 |
| 200 staff: 120 Business Premium, 50 Business Basic, 30 F3 | £30,348 | £12.64 |
| 200 staff, everyone on Business Premium | £40,560 | £16.90 |
| 500 staff: 400 Microsoft 365 E3, 100 F3 | £170,040 | £28.34 |
| 500 staff, everyone on Microsoft 365 E3 | £201,000 | £33.50 |
| 500 staff, everyone on Microsoft 365 E5 | £309,600 | £51.60 |
In each of the three mixed-estate pairs the mix costs between 15% and 25% less than the single plan, without taking security away from anyone who needs it: the people on Basic or F3 never had a company laptop to protect. That is the argument for licensing by role, and it is usually where a renewal review finds its savings.
How to pay less
Five things move the bill, in roughly the order of how much they save. Match plans to roles rather than putting everyone on the plan the most demanding user needs. Move deskless staff to F1 or F3. Take the annual subscription for core staff and keep a small monthly pool for contractors and seasonal peaks. Ask for the version without Teams if you use another meetings product, or if you only need Teams for a few people who can hold the £6.60 Teams Enterprise add-on. And check add-ons at every renewal, because Teams Phone, Power BI Pro, Visio and Project licences bought for a project tend to stay assigned long after it ends.
If you would like the numbers for your own estate, a free Microsoft 365 licensing assessment compares what you hold with what people use and prices the right mix at these list prices. It is the first step of our Microsoft 365 licensing consultancy.
About these prices
Prices on this page were read from Microsoft's UK pages on 23 October 2026, and are the same figures the plan comparison tool uses (its feature data was last checked on 28 October 2026). They are per user a month, excluding VAT, for an annual subscription, in the version that includes Teams unless stated. Prices marked indicative, which include the Frontline plans and the Frontline suites, are not on Microsoft's UK pages and come from UK resellers. Volume agreements, charity pricing and promotions differ, and prices through a Cloud Solution Provider can be slightly below list. Confirm with Microsoft or your licensing partner before you commit. Microsoft reviews the local-currency prices of its cloud services every 1 January, starting on 1 January 2027, and says guidance on that first update will come in November 2026; it hasn't said whether prices in pounds will change (local-currency price reviews). ComputeCloud is not affiliated with Microsoft.
Sources:
- Microsoft 365 for business: plans and pricing (UK)
- Microsoft 365 for business: plans without Teams (UK)
- Microsoft 365 Enterprise: plans and pricing (UK)
- Office 365 Enterprise: plans and pricing (UK)
- Microsoft 365 Frontline: plans and pricing (UK)
- Microsoft Defender Suite (UK)
- Microsoft Purview Suite (UK)
- Microsoft security suites (US): Defender Suite contents, including Entra ID P2
- Microsoft security for small and medium businesses (UK): Business Standard and Business Premium with and without Teams; Defender Suite and Purview Suite for Business Premium £7.70 each, £11.50 together
- Microsoft Intune pricing (UK): Microsoft 365 E3 and E5, with and without Teams
- Microsoft Entra pricing (UK): Microsoft 365 E7, with and without Teams
- Partner Center announcements, July 2026: Annual local currency pricing updates for Commercial Cloud
- Microsoft 365 for nonprofits: business plans (UK)
- Microsoft 365 for nonprofits: enterprise plans (UK)
- Microsoft Tech Community: Business Premium and Office 365 E1 grant discontinuation (May 2025)
- Microsoft 365 Education (UK)
- Partner Center announcements, December 2025: Copilot Business launch, and the 1 July 2026 price update announced on 4 December 2025
- Microsoft 365 blog: Advancing Microsoft 365, new capabilities and pricing update (4 December 2025)
- Partner Center announcements, April 2026: Copilot Business offers extended to 30 June 2026
- Partner Center announcements, June 2026: Copilot Business promotion extended to 31 December 2026
- Microsoft Learn: new commerce promotions and renewals
- Partner Center announcements, October 2026: Copilot offers and name updates (Copilot without a base subscription from 1 December 2026)
- Microsoft 365 Copilot for enterprise (UK): Microsoft 365 Copilot £23.10
- Microsoft 365 Copilot for business (UK): Copilot Business £16.10 (£13.80 promotion), Business Standard and Business Premium with Copilot
- Trusted Tech Team UK, July 2026 (UK reseller; the previous prices in the July 2026 table)
Frequently asked questions
How much does Microsoft 365 cost per user in the UK?
It depends on the plan. For a business with up to 300 users, Microsoft 365 Business Basic is £5.40 per user a month, Business Standard £10.80 and Business Premium £16.90, all on an annual subscription and excluding VAT. Larger organisations pay £23.30 for Office 365 E3, £33.50 for Microsoft 365 E3 and £51.60 for Microsoft 365 E5. Frontline workers can be licensed from £2.30 (F1) or £7.70 (F3), indicative prices from UK resellers. The other prices here are Microsoft's UK list prices per user a month.
Is the Microsoft 365 price per month or per year?
Microsoft quotes every price per user a month, but the standard subscription is annual: you commit for twelve months and pay either yearly up front or monthly. A true month-to-month subscription, which you can cancel or shrink at any time, costs 20% more on the Business plans (Business Premium is £20.28 a month instead of £16.90). Since 1 April 2025 Microsoft has charged 5% more for paying monthly on an annual commitment than for paying for the year in advance.
Do Microsoft 365 prices include VAT?
No. Every price Microsoft publishes for business plans excludes VAT, and so do the prices on this page unless marked otherwise. A VAT-registered business reclaims it, so the ex-VAT figure is the real cost; a sole trader or charity that isn't registered should add 20%, which makes Business Premium £20.28 a month and Business Basic £6.48.
What is the cheapest Microsoft 365 plan for a business?
Microsoft 365 F1, at an indicative £2.30 per user a month, is the cheapest licence Microsoft sells, but it is restricted to frontline staff and gives Teams and read-only Office on the web with no mailbox. The cheapest full plan is Business Basic at £5.40, with email, Teams, 1 TB of OneDrive and the web and mobile Office apps. If people need the desktop apps, Business Standard at £10.80 is the floor; if they need the devices managed and protected, Business Premium at £16.90.
Why is there a version of each plan without Teams?
Microsoft unbundled Teams from its suites after the European Commission examined the bundling. Each Business, Office 365 and Microsoft 365 Enterprise plan now comes in a version with Teams and a cheaper version without it, and Teams can be bought separately (Microsoft Teams Enterprise is £6.60 per user a month). Microsoft's UK pages still sell both versions to new customers, so the choice is open at each renewal and the difference is worth checking: Business Premium without Teams is £14.40 rather than £16.90, and Microsoft 365 E3 is £27.00 rather than £33.50.
Do charities get Microsoft 365 free?
Partly. Eligible UK charities can get Microsoft 365 Business Basic free for up to 300 staff users, and pay heavily discounted prices for the rest: Business Standard £2.70, Business Premium £4.20, Microsoft 365 E3 £8.40 and E5 £20.60 per user a month. The free Business Premium and Office 365 E1 grants ended at the first renewal on or after 1 July 2025; the Business Basic grant continues. Eligibility is checked by Microsoft and the licences are for paid staff; volunteers can be covered by up to five F3 licences for each paid E3 or E5 seat.
Is it cheaper to buy Microsoft 365 from Microsoft or from a reseller?
The list price is the same, and a reseller (a Cloud Solution Provider) can sometimes go a little below it, especially on larger renewals, as well as handling the billing and support. The things that change the bill are the commitment term, whether you need the Teams version, and the mix of plans across your people, not where you buy. A licensing assessment works those numbers out for your own estate.
When do Microsoft 365 prices change?
Microsoft's last UK increase took effect on 1 July 2026 and applied to existing customers at their next renewal after that date. Microsoft announced that rise on 4 December 2025, about seven months before it took effect, on its Microsoft 365 blog and in Partner Center, so a renewal falling before 1 July could still lock in the old price. This page is re-checked against Microsoft's UK pages regularly; the date of the last check is in the About these prices section at the end. Past Microsoft 365 price increases, and the changes still to come, are listed in the Microsoft 365 price increase log.
Sources (17). Facts checked .
- Partner Center announcements, December 2025 (Copilot Business launch and promotions)
- Partner Center announcements, April 2026 (Copilot Business offers extended to 30 June 2026)
- Partner Center announcements, June 2026 (Copilot Business promotion extended to 31 December 2026)
- Microsoft Learn: new commerce promotions and renewals
- Microsoft 365 blog: Advancing Microsoft 365, new capabilities and pricing update (4 December 2025)
- Microsoft 365 blog: Flexible billing for Microsoft 365 Copilot, pricing updates for annual subscriptions and Teams Phone (12 November 2024)
- Microsoft Learn: Microsoft 365 Business Premium FAQ (up to 300 seats in total across Business Basic, Standard and Premium)
- Partner Center announcements, October 2026: Copilot offers and name updates (Copilot without a base subscription from 1 December 2026)
- Microsoft 365 Copilot for business (UK): Copilot Business £16.10, £13.80 promotion for the first year, Business Standard and Business Premium with Copilot
- Microsoft 365 Copilot for enterprise (UK): Microsoft 365 Copilot (add-on) £23.10
- Microsoft security for small and medium businesses (UK): Business Standard £10.80 (£8.30 without Teams) and Business Premium £16.90 (£14.40 without Teams), paid yearly, ex VAT
- Microsoft Intune pricing (UK): Microsoft 365 E3 £33.50 (£27.00 without Teams) and E5 £51.60 (£45.00 without Teams), paid yearly, ex VAT
- Microsoft Entra pricing (UK): Microsoft 365 E7 £81.60 (£75.00 without Teams), paid yearly, ex VAT
- Microsoft Defender Suite (UK): £9.20, paid yearly, ex VAT
- Microsoft Purview Suite (UK): £9.20, paid yearly, ex VAT
- Partner Center announcements, July 2026: Annual local currency pricing updates for Commercial Cloud (first update 1 January 2027, guidance in November 2026)
- Microsoft Learn: Microsoft 365 Backup pricing (billed per GiB of protected content through an Azure subscription; checked 31 October 2026)