Microsoft 365 Price: UK Business Pricing Guide 2025

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 — £9.40/user/month
• Microsoft 365 Business Premium — £17.60/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 — £9.40/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 — £17.60/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 Cyber Essentials Plus, 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.