Microsoft 365 and Copilot pricing and plan guide UK 2025

It's not always easy for a UK-based business to choose wisely among all the Microsoft pricing plans. There have been changes across Microsoft 365, and we've witnessed the rise of Copilot, so some clarity might be needed before making any payment. No matter how big or small a business is, making sure where all the costs come from is essential. So, if subscriptions are being paid in multiple currencies, having a Wise Business account can make things easier.

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Microsoft pricing overview

Microsoft 365 is the toolkit most businesses already use – apps like Word, Excel, Outlook, Teams, and OneDrive, all bundled together in the cloud. It keeps your team connected and helps everyone get stuff done, whether they're in the office or working from home. Copilot, on the other hand, is the new AI assistant built into those tools. It can draft emails, summarise meetings, generate reports, and basically save you a load of time on repetitive tasks.

As for Microsoft 365 pricing, it's charged per user¹, with different plans depending on the features you need. All plans are billed annually and auto-renews each year. The only exception is Microsoft Copilot pricing, which is an added cost on top of your regular Microsoft 365 plan² that can be paid per month.

Plan	Price per user/month (billed annually)	Approx. yearly cost
Microsoft 365 Business Basic	£4.60	£55.20
Microsoft 365 Business Standard	£9.60	£115.20
Microsoft 365 Business Premium	£16.90	£202.80
Microsoft 365 Apps for Business	£8.10	£97.20
Enterprise (E3)	£29.00	£348.00
Enterprise (E5)	£47.10	£565.20
Microsoft Copilot (add-on)	£23.10	£277.20
Microsoft Copilot (add-on)	£24.26	£291.12

Microsoft 365 Business Basic pricing

Business Basic is Microsoft 365's starter plan, and it's perfect if you just need the essentials without breaking the bank. It costs £4.60 per user each month when you pay yearly, coming to £55.20 a year. You won't get the full desktop versions of apps like Word and Excel, but you'll have reliable access through web and mobile apps instead. If you want to add Copilot later, that's an extra charge on top of this base plan.

Microsoft 365 Business Basic features

While you won't get the desktop apps, this plan covers all the core needs for light users or teams working entirely in the cloud. Here's what you get with the Business Basic plan¹:

• Web and mobile versions of Word, Excel, PowerPoint, and Outlook
• Microsoft Teams for video calls, chat, and collaboration
• 1 TB of OneDrive cloud storage per user
• Business-class email with a custom domain
• Access to web-based versions of Microsoft 365 apps from any device
• Basic security and admin tools to manage users and data

Is Microsoft 365 Business Basic right for my business?

If your team mostly uses web apps or works remotely, Business Basic is a smart and affordable starting point. It's great for small teams who work in their browsers, rely on email and video meetings, and don't need desktop apps installed. You get access to Microsoft's core tools without paying for things you might not use. And if you decide to upgrade later, it's easy to move up a tier when your needs grow.

Microsoft 365 Business Standard pricing

Business Standard is a popular middle-ground plan that gives you access to both web and desktop versions of the main Microsoft apps. It costs £9.60 per user/month when billed annually, which adds up to £115.20 per year. For many small teams, it's a good balance between features and cost. You'll still need to pay extra for Copilot if you want AI support added to your daily workflow.

Microsoft 365 Business Standard features

With Business Standard, you get quite a bit more flexibility compared to Business Basic. It's a strong all-rounder for businesses that need more than just the basics, especially if your team prefers working with the full desktop experience. Here's what's included¹:

• Full desktop versions of Word, Excel, PowerPoint, and Outlook (PC and Mac)
• Web and mobile versions of all key apps
• Microsoft Teams for meetings and chat
• Business-class email and shared calendars
• 1 TB OneDrive storage per user
• Publisher and Access (PC only)
• Tools for managing devices and users across your business

Is Microsoft 365 Business Standard right for my business?

If your team uses Microsoft apps every day and needs the full suite, Standard is a good choice. It works well for businesses with people in the office or those mixing remote and in-person work. You get the desktop versions of Word, Excel, and Outlook, which can make a big difference. Plus, it offers more flexibility than Business Basic, without the added security features (and higher price) of Business Premium.

Microsoft 365 Business Premium pricing

Business Premium is the top-tier plan in Microsoft's small business lineup. It includes everything from the Standard plan, plus advanced security and device management features. It costs £16.90 per user/month when you pay yearly, which adds up to £202.80 a year. This plan is ideal if you need stronger control over your data and who can access it, which is especially useful if you handle sensitive information or provide company devices.

Microsoft 365 Business Premium features

Business Premium comes with all the features of Business Standard, and then adds on top. If security matters to your business, or you're in a regulated industry, these extras can make a real difference. Here's what you get:

• Full desktop, web, and mobile versions of Word, Excel, PowerPoint, Outlook, and more
• Microsoft Teams for messaging and video meetings
• 1 TB OneDrive storage per user
• Business-class email with custom domain
• Microsoft Defender for Business (endpoint protection)
• Intune for mobile device and app management
• Azure Information Protection (sensitive data control and labelling)
• Tools to help with compliance and identity management

Is Microsoft 365 Business Premium right for my business?

If your business handles sensitive data³, operates in a regulated space (like finance or healthcare), or simply wants stronger protection for users and devices, Premium is a smart move. It's also a good fit for teams using company-owned laptops, tablets, or phones.

Microsoft 365 Apps for Business pricing

Apps for Business is the "apps only" plan, without email or Teams, just with the core Office apps. It costs £8.60 per user/month when billed annually, which comes to £103.20 per year. It's a budget-friendly option if you already have another solution for email and communication, but still want the full desktop versions of Word, Excel, and PowerPoint for your team. Copilot is not included, but you can add it for an extra fee if needed.

Microsoft 365 Apps for Business features

With this plan, you're getting Microsoft's productivity apps without the communication tools. It's perfect if you don't need Microsoft-hosted email or collaboration tools. Here's what's included:

• Full desktop versions of Word, Excel, PowerPoint, and Outlook (PC and Mac)
• Web and mobile app versions
• 1 TB OneDrive storage per user
• Publisher and Access (PC only)
• File share and sync through OneDrive
• Regular updates

Is Microsoft 365 Apps for Business right for my business?

If you're happy with your current email or communication tools like Google Workspace, Slack, or Zoom, this plan can help you save some cash. You still get the latest Microsoft apps and plenty of cloud storage, but without paying for extras you don't need. For small teams that mainly use Word, Excel, and PowerPoint, it's a simple and budget-friendly option.

Microsoft 365 Enterprise (E3 and E5) pricing

The Microsoft 365 Enterprise range is aimed at bigger businesses. With E3 and E5, you're getting enterprise-grade security, compliance tools, and analytics baked in. As for the pricing, E3 is £29.00 per user/month and E5 is £47.10 per user/month, and both are billed annually⁴.

Microsoft 365 Enterprise (E3 and E5) features

Both E3 and E5 give you the full Office suite, unlimited OneDrive storage, and advanced security tools. E3 focuses on compliance, data loss prevention, and better admin control, while E5 layers in even more, like advanced threat protection, analytics with Power BI Pro, and enhanced voice and meeting capabilities in Teams⁵. You get the following:

• Unlimited OneDrive cloud storage for each user
• Advanced compliance features like eDiscovery and retention policies
• Endpoint and identity protection
• Microsoft Teams with advanced meeting options
• Power BI Pro for data analysis (E5 only)
• Advanced Threat Protection (E5 only)
• Cloud-based phone system (E5 only)

Is Microsoft 365 Enterprise (E3 and E5) right for my business?

If you run a medium to large organisation, handle sensitive client data, or need top-tier security and compliance, Enterprise plans make sense. They're also a good fit if your teams rely heavily on collaboration tools, large-scale data analysis, or advanced telephony features. Smaller businesses might find them overkill, but for companies with complex IT needs, the investment can save time, reduce risk, and keep everything running smoothly.

Copilot for Microsoft 365 pricing

Copilot for Microsoft 365 is Microsoft's AI assistant built right into your apps⁶. It's designed to help you draft documents, summarise meetings, analyse data, and even brainstorm ideas while you're still using Word, Excel, Teams, or Outlook. In the UK, Microsoft Copilot business pricing is £24.70 per user/month (billed annually, £296.40 per year) and requires an existing Microsoft 365 Business Standard, Business Premium, or Enterprise plan.

Copilot for Microsoft 365 features

Copilot works differently from a plain chatbot, as it is integrated to work inside the apps your team already uses. In essence, it's a superpowered assistant built into your workflow. Here's what it can do:

• Draft, rewrite, or summarise text in Word
• Create data visualisations and analyse trends in Excel
• Generate presentation slides in PowerPoint
• Summarise meeting notes and action items in Teams
• Help with inbox management and email drafting in Outlook
• Pull information from across your documents, chats, and emails instantly
• Answer business questions using your company's data (with permissions)

Is Copilot right for my business?

If your team spends a lot of time creating reports, presentations, or long documents, Copilot can save hours each week. It's also handy for businesses that handle lots of data and want faster insights without manual number crunching. That said, it's not cheap, so it's worth checking whether your team will use it regularly enough to justify the cost. For many, the productivity boost more than pays for itself.

How much do Microsoft 365 add-ons cost?

Microsoft's ecosystem can feel great for customising, but prices add up quickly. Here's what businesses in the UK are paying for some of the most popular add-ons, besides the Microsoft 365 Copilot (Business):

• Copilot for Sales and Copilot for Service are typically $50 per user/month⁷
• Pay-as-you-go Copilot Agents, charged via Azure's usage model, and the cost varies⁸
• Teams Phone Standard is £7.70/month, with an annual commitment
• Teams Essentials is £3.10/month (annual)

What is the pricing currency?

Microsoft prices Microsoft 365 and Copilot in a range of local currencies, depending on where you're based. For UK customers, all subscription and add-on prices are billed in pounds sterling (£). This means you won't normally face conversion fees, unless your business card or payment method charges in a different currency.

For businesses paying from multiple locations, or in currencies other than GBP, using a Wise Business account can help. You can hold 40+ currencies, pay in local currency at the mid-market rate*, and avoid the hidden markups banks often add.

How to save on your Microsoft 365 bill next month

Cutting your Microsoft 365 costs doesn't mean your team will have to downgrade, but instead, make sure you're getting value for every pound spent. The best way to do this is to review your current plan and see if it still fits your team's needs. Second, run a quick "feature audit" with your team, as you might be paying for extras you don't need.

Finally, watch out for hidden costs like foreign transaction fees. If you're billed in a currency other than GBP, those small percentage fees can add up over the year. With a Wise Business multi-currency account, you can hold 40+ currencies and pay Microsoft directly, always at the mid-market rate* with no markups.

Microsoft 365 vs. Google Workspace - price comparison

In the UK, Microsoft 365 is generally slightly more affordable than Google Workspace at the entry and mid-tier levels. Microsoft's Business Basic (£4.60 per user/month) costs less than Google's Business Starter (£5.90), and Business Standard (£9.60) is just below Workspace's Business Standard (£11.80).

At the higher tiers, the gap narrows, with Microsoft 365 Business Premium at £16.90 and Google's Business Plus at £18.40. Both offer extensive suites of productivity tools, so for many businesses, the choice comes down to ecosystem preference rather than price alone.

💡 You may also like: Google AI Pricing and Plan Guide

Manage Microsoft 365 and Copilot payments with Wise Business

Microsoft 365 and Copilot give UK businesses a powerful mix of productivity tools and AI smarts to work faster and smarter. With the right plan, you can get everything from core apps like Word and Excel to AI features that save hours on admin. The key is to choose only what your team will actually use and keep an eye on your subscription costs.

And remember – if you're paying in foreign currencies, those bank fees can creep up. With the Wise Business multi-currency card, you can pay for Microsoft 365, Copilot, and other SaaS tools in over 40+ currencies.

Register with Wise Business🚀

FAQs

Does Microsoft 365 have a free plan / free trial?

There's no free plan available, but there's a 1-month free trial for most business plans.

Does Microsoft 365 have an app?

Microsoft 365 has mobile and desktop apps for Word, Excel, Outlook, Teams, and more.

Does Microsoft 365 have an API?

Microsoft Graph API lets you connect and automate across 365 services.

Does Microsoft 365 have any implementation and onboarding costs?

Microsoft 365 doesn't have any implementation and onboarding costs for most small-business setups. Large enterprise deployments may need paid onboarding or consulting, which adds to total costs.

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Sources used:

1. Microsoft 365 Business Plans and Pricing – Microsoft 365 plans
2. Microsoft 365 Copilot—Business Plans – Microsoft 365 Copilot pricing
3. Microsoft 365 Business Premium is Best for Most Businesses – Next Perimeter
4. Compare Microsoft 365 Enterprise Plans – Microsoft 365 for Enterprise
5. Microsoft 365 E3 vs E5: what's the difference? - Infinity – Infinity Group
6. Microsoft 365 Copilot | Features – Plain Concepts
7. AI Sales Tools | Microsoft 365 Copilot for Sales – Microsoft 365 Copilot for Sales
8. Microsoft 365 Copilot pay-as-you-go overview – Microsoft 365

Source last checked: 02-Sept-2025