Microsoft 365 licensing, decoded

Know exactly what
you’re buying.

A clear, current guide to Microsoft’s Business, Office 365 Enterprise and Microsoft 365 Enterprise licences in the United Kingdom.

Plan catalogue13licence options
Updated11 Aug 2026
MarketUnited Kingdom
01
Business

Up to 300 users. Straightforward bundles for small and medium-sized organisations.

02
Office 365

Apps and cloud services without Windows Enterprise or full endpoint management.

03
Microsoft 365

Office 365 plus Windows, identity, device management and deeper security.

The catalogue

Find your fit

Search by need or filter by licence family. Click any plan for its complete service breakdown, or select up to four plans to compare.

Price variant
13 plans shown Prices are per user/month, paid yearly, excluding VAT
Apps only

Apps for business

Desktop apps and cloud storage

£9.80/ user
/ month

Paid yearly · excludes VAT

  • Desktop Word, Excel, PowerPoint and Outlook
  • 1 TB OneDrive per user
  • Install across PCs, Macs and mobile devices
Business

Business Basic

Cloud-first productivity

£5.40/ user
/ month

Paid yearly · excludes VAT

  • Web and mobile Office apps
  • Custom business email
  • 1 TB OneDrive per user
Business

Business Premium

Productivity plus advanced protection

£16.90/ user
/ month

Paid yearly · excludes VAT

  • Everything in Standard
  • Intune device management
  • Defender for Business and Entra ID P1
Business

Business Standard with Copilot

AI included

Full productivity with work-grounded AI

£18.10/ user
/ month

Paid yearly · excludes VAT

  • Everything in Business Standard
  • Copilot in Word, Excel, PowerPoint and Outlook
  • Research, analysis and agent creation
Business

Business Premium with Copilot

AI included

Protected work with built-in AI

£24.60/ user
/ month

Paid yearly · excludes VAT

  • Everything in Business Premium
  • Microsoft 365 Copilot Business
  • Advanced device, identity and threat protection
Apps only

Apps for enterprise

Enterprise desktop applications

£13.70/ user
/ month

Paid yearly · excludes VAT

  • Enterprise desktop Office apps
  • 1 TB OneDrive per user
  • No hosted email or Teams
Office 365

Office 365 E1

Enterprise cloud productivity

£7.70/ user
/ month

Paid yearly · excludes VAT

  • Web and mobile Office apps
  • Enterprise email and collaboration
  • Baseline security and Copilot Chat
Office 365

Office 365 E3

Full enterprise productivity suite

£23.30/ user
/ month

Paid yearly · excludes VAT

  • Desktop, web and mobile Office apps
  • Exchange Plan 2 and SharePoint Plan 2
  • DLP, standard audit and eDiscovery
Office 365

Office 365 E5

Advanced compliance and analytics

£36.80/ user
/ month

Paid yearly · excludes VAT

  • Everything in Office 365 E3
  • Power BI Pro and advanced Purview
  • Teams Phone and Audio Conferencing in the Teams version
Microsoft 365

Microsoft 365 E5

Advanced security, compliance and analytics

£51.60/ user
/ month

Paid yearly · excludes VAT

  • Everything in Microsoft 365 E3
  • Entra ID P2 and Microsoft Defender XDR
  • Power BI Pro, advanced Purview and Teams Phone
Microsoft 365

Microsoft 365 E7

AI included

Microsoft’s frontier enterprise suite

£81.60/ user
/ month

Paid yearly · excludes VAT

  • Everything in Microsoft 365 E5
  • Microsoft 365 Copilot, Agent 365 and Entra Suite
  • Unified governance for people, data, devices and agents

Side-by-side

Compare the detail

Choose any plan above. When a fifth is added, the oldest selection is replaced.

CapabilityBusinessBusiness Standard£10.80BusinessBusiness Premium£16.90Microsoft 365Microsoft 365 E3£33.50
Best forMost small and medium-sized organisationsSMBs that manage devices or sensitive dataEnterprises managing users, devices and data together
Seat limitUp to 300Up to 300Any size
Productivity appsDesktop, web and mobile appsDesktop, web and mobile appsDesktop, web and mobile apps
EmailExchange Plan 1 · 50 GB mailbox50 GB mailbox + auto-expanding archive up to 1.5 TBExchange Plan 2 · 100 GB mailbox
TeamsChat, meetings and webinarsChat, meetings and webinarsChat, meetings and webinars
Cloud storage1 TB OneDrive per user1 TB OneDrive per user1–5+ TB OneDrive per user
Identity & devicesCore identity controlsEntra ID P1 + Intune P1Entra ID P1, Intune P1, Windows 11 Enterprise E3
Security & complianceBaseline email protectionDefender for Business, Defender for Office 365 P1, information protectionDefender for Endpoint P1 and core Purview
AI & analyticsCopilot Chat; full Copilot optionalCopilot Chat; full Copilot optionalCopilot Chat; full Copilot optional

The short version

What actually changes?

1

Need desktop apps?

Skip Business Basic and Office 365 E1. Every other suite here includes installable desktop apps.

2

Need to manage devices?

Start with Business Premium for up to 300 users, or Microsoft 365 E3 and above for enterprise.

3

Need advanced security?

Microsoft 365 E5 adds advanced identity, Defender XDR and Purview. E7 layers Copilot and agent governance on top.

4

Need Copilot included?

Choose a Business “with Copilot” bundle or Microsoft 365 E7. For most other suites it is an add-on.

Service-level detail

What each service does

Every label in a licence breakdown opens to explain its practical capabilities, limits and important exclusions.

34 documented services and entitlements

Read before buying

Important licensing notes

Business plan user limit +

Microsoft 365 Business base plans are designed for organisations with up to 300 provisioned users across the Business family. Enterprise plans do not carry that 300-seat ceiling.

Teams and no-Teams versions +

Microsoft sells several suites both with and without Microsoft Teams. The switch above changes displayed pricing and the comparison table. Apps-only plans never include Teams.

Copilot Chat versus Microsoft 365 Copilot +

Copilot Chat is included with eligible subscriptions, but agents can create metered Azure charges. Work-grounded Copilot inside Microsoft 365 apps is a paid add-on unless the plan name says “with Copilot” or you choose Microsoft 365 E7.

Pricing and procurement +

Displayed UK list prices are per user per month, paid yearly, and exclude VAT. Microsoft partners, volume agreements, monthly terms and promotions can produce different prices.