Microsoft 365 for Small Business UK: The Complete 2026 Guide
Microsoft 365 is the backbone of modern small business IT in the UK — but choosing the right plan is more complex than it looks. Pick too low and you miss critical security features. Pick too high and you're paying for licences your team will never use.
This guide cuts through the confusion and tells you exactly which Microsoft 365 plan a UK small business should choose in 2026.
Microsoft 365 Small Business Plans: What's Available in the UK
There are four core Microsoft 365 plans designed for small businesses (under 300 users):
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| Plan | Price (est. 2026) | Best for | |------|-----------------|----------| | Microsoft 365 Business Basic | ~£5.10/user/month | Email + Teams only, minimal desktop apps | | Microsoft 365 Business Standard | ~£10.30/user/month | Full Office apps + Teams + cloud services | | Microsoft 365 Business Premium | ~£18.60/user/month | Everything + enterprise security | | Microsoft 365 Apps for Business | ~£8.70/user/month | Office apps only, no Exchange email |
UK prices exclude VAT. Check Microsoft's current pricing as these change periodically.
Microsoft 365 Business Basic
What you get: Exchange email (50GB mailbox), Microsoft Teams, SharePoint, OneDrive (1TB), and web/mobile versions of Office apps only. No desktop Word, Excel, or PowerPoint.
Best for: Businesses where staff primarily work in a browser or mobile — or where you have existing desktop software licences you want to keep.
Watch out for: No desktop Office apps means staff can't open or edit files offline. If your team relies on desktop Word, Excel, or PowerPoint, Business Basic will frustrate them.
Verdict for UK small businesses: Fine as a starting point, but most businesses quickly find they need at least Business Standard.
Microsoft 365 Business Standard
What you get: Everything in Basic, PLUS full desktop versions of Word, Excel, PowerPoint, Outlook, Access, and Publisher on up to 5 devices per user. Also includes Teams webinar features and booking.
Best for: The majority of UK small businesses — 5–50 users who need desktop Office apps, Exchange email, Teams, and SharePoint in one subscription.
The key upgrade: Desktop apps installed locally mean staff can work offline, files open faster, and compatibility with legacy documents is preserved.
Verdict for UK small businesses: This is the sweet spot for most SMEs. The jump from Basic to Standard (~£5/user/month) pays for itself instantly in productivity.
Microsoft 365 Business Premium
What you get: Everything in Standard, PLUS:
- Microsoft Intune — MDM/mobile device management
- Microsoft Entra ID P1 — conditional access, MFA enforcement, sign-in risk policies
- Microsoft Defender for Business — enterprise EDR (endpoint detection & response)
- Azure Information Protection P1 — data classification and protection
- Microsoft Purview — compliance tools, eDiscovery
Best for: Any UK business handling sensitive data, subject to GDPR, FCA regulation, SRA compliance, or CQC requirements. Also essential for Cyber Essentials Plus certification.
The security argument: If you suffer a ransomware attack or data breach on Business Basic or Standard, your cyber insurance may not pay out — and your regulator will ask why you didn't have basic MDM and EDR in place. Business Premium costs £8–9/user/month more than Standard. One avoided incident pays for years of licences.
Verdict for UK small businesses: Strongly recommended for any business handling client data, financial information, or operating in a regulated sector. This is the plan Coreitech recommends as standard for London SMEs.
Which Microsoft 365 Plan Should UK Small Businesses Choose?
Here's a quick decision framework:
Choose Business Basic if:
- Your team works entirely in-browser or on mobile
- You already have desktop Office licences
- Budget is the primary constraint
- You have fewer than 10 users with minimal data sensitivity
Choose Business Standard if:
- Your team needs desktop Word, Excel, PowerPoint
- You want Teams webinars and booking features
- You run a standard professional services business without heavy compliance requirements
Choose Business Premium if:
- You handle client personal data (GDPR obligation)
- You're in a regulated sector (FCA, SRA, CQC, ICO)
- You want Cyber Essentials or Cyber Essentials Plus
- Staff use personal devices to access business systems
- You've had any security incidents or want enterprise-grade protection
- You're preparing for a client or investor security audit
Microsoft 365 Migration for UK Small Businesses
If you're moving from an existing email system (hosted Exchange, Google Workspace, or on-premise Exchange), Microsoft 365 migration typically takes 2–5 days for a small business depending on mailbox size and complexity.
Key migration steps:
- Tenant setup and domain verification
- Mailbox migration (typically overnight with zero downtime)
- Desktop app deployment via Intune or manual installation
- SharePoint and Teams configuration
- Security hardening (MFA, conditional access, Defender configuration)
Coreitech provides end-to-end Microsoft 365 migration for London and UK businesses — fixed-fee, zero downtime, no data loss.
Microsoft 365 Pricing in the UK: What to Expect in 2026
Microsoft's pricing for small business plans in the UK in 2026 (approximate, excluding VAT):
- Business Basic: ~£5.10/user/month (annual commitment)
- Business Standard: ~£10.30/user/month (annual commitment)
- Business Premium: ~£18.60/user/month (annual commitment)
- Apps for Business: ~£8.70/user/month (annual commitment)
Monthly (no annual commitment) pricing is approximately 20% higher. For a 20-person business, the difference between annual and monthly commitment is significant — around £500–1,000/year depending on plan.
Note: Microsoft periodically adjusts UK pricing. Your Microsoft partner (like Coreitech) can advise on current pricing and any available promotions.
Common Questions About Microsoft 365 for Small Business UK
Can I mix Microsoft 365 plans?
Yes. You can assign different plans to different users — for example, Business Premium for senior staff handling sensitive data, and Business Basic for occasional users. This is a common cost-saving approach for businesses with mixed requirements.
Do I need a Microsoft partner?
You can buy directly from Microsoft, but working through a Microsoft CSP (Cloud Solution Provider) partner like Coreitech typically means better support, lower prices in some cases, and someone to help you configure everything correctly. Most small businesses significantly underutilise their Microsoft 365 licences — a partner ensures you actually get value from what you're paying for.
What's the difference between Microsoft 365 and Office 365?
Office 365 was the old branding — Microsoft renamed it to Microsoft 365 in 2020. Microsoft 365 includes everything that Office 365 did, plus additional security and AI features. All new subscriptions are Microsoft 365.
Is Microsoft 365 Business Premium worth the cost?
For most UK SMEs, yes. The security features in Business Premium (Defender, Intune, Entra ID P1) would cost significantly more if purchased separately. More importantly, they address the most common attack vectors — phishing, unmanaged devices, and weak authentication — that cause the majority of UK SME cyber incidents.
Need Help Choosing or Migrating to Microsoft 365?
Coreitech helps London and UK businesses choose the right Microsoft 365 plan, migrate from existing systems, and fully configure the security features that most businesses never set up.
Free Microsoft 365 audit: We'll review your current setup, identify gaps, and recommend the right plan — no obligation.
📞 Call: 0203 834 9728 📧 Email: sales@coreitech.co.uk
Last updated: June 2026. Prices and features subject to change — contact us for current pricing.