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Microsoft 365 for business costs from around £5.40 per user per month for Business Basic, rising to around £24.60 per user per month for Business Premium, billed per user on an annual or monthly basis.
Business Basic - from around £5.40 per user per month
These are current UK list prices, ex VAT, following Microsoft's price increase on 1 July 2026. Larger organisations moving to Enterprise plans such as E3 or E5 should expect a higher per-user cost in exchange for more advanced compliance and voice features, and pricing at that level is usually negotiated directly rather than taken from a public list price.
The headline licence cost does not automatically include everything a business may need. Teams Phone calling plans, additional mailbox or SharePoint storage, and dedicated third-party backup for mailboxes and files are usually priced separately, since Microsoft's own retention tools are not a substitute for a full backup solution.
Beyond the licence itself, it is worth budgeting for migration and setup if moving from another platform, staff training on new features, and ongoing management to keep security settings and user accounts up to date. Businesses that skip this step often end up with licences that are technically paid for but not properly configured, which reduces the value of the investment.
Committing to an annual term keeps the price at the standard rate, while paying monthly typically costs around 20% more per user. For businesses with fluctuating headcount, monthly billing can still work out better despite the higher rate, since users can be added or removed as needed rather than being locked into a fixed annual count.
Bytes Digital helps businesses across Bristol and the South West choose the right Microsoft 365 plan and billing option, and can confirm exact current pricing for your user count.
