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Businesses typically choose from four main Microsoft 365 licence tiers, Business Basic, Business Standard, Business Premium, and Apps for Business, with larger organisations sometimes stepping up to Enterprise plans. Each tier offers a different mix of email, desktop apps, and security features.
Businesses beyond around 300 users usually move to Microsoft 365 Enterprise plans, such as E3 or E5, which add features like advanced compliance tools,threat protection and voice capabilities.
Microsoft 365 Business licences are priced per user, per month, on an annual commitment, with monthly billing costing around 20% more. Current UK list prices (ex VAT) areapproximately:
Microsoft increased UK list prices on 1 July 2026, with Business Basic and Standard both rising and Business Premium held flat, which has narrowed the price gap between Standard and Premium. Alongside the increase, Basic and Standard gained extra mailbox storage and additional phishing protection in Outlook, and Premium gained an extra layer of Defender protection as standard.
These are list prices and can vary slightly by reseller and renewal date, so it is worth checking current pricing before budgeting, or asking a managed IT provider to confirm the figure for your exact user count.
The right licence depends on team size, how your business handles data, and whether desktop apps are needed day to day. Getting it wrong can mean paying for features you never use, or missing security protections you actually need.
At Bytes Digital,we manage Microsoft 365 environments for businesses across Bristol and the South West, helping teams choose the right mix of licences and keeping them configured securely.
