Microsoft 365 Business Basic vs Standard vs Premium

Current Microsoft 365 Business pricing in the UK

Microsoft changes plan packaging, Teams availability and Copilot bundles, so pricing should always be checked at the point of purchase. At the time this article was updated (30 September 2026), Microsoft’s UK comparison page lists:

• Microsoft 365 Business Basic: £5.40 per user/month, paid yearly, excluding VAT;
• Microsoft 365 Business Standard with Copilot: £18.10 per user/month, paid yearly, excluding VAT;
• Microsoft 365 Business Premium with Copilot: £24.60 per user/month, paid yearly, excluding VAT.

Microsoft also lists variants without Teams, and the available bundles can change. Check the current Microsoft UK business plan comparison before committing to licences.

Basic vs Standard vs Premium: the practical differences

The table deliberately focuses on the difference a small-business owner or IT administrator normally feels. Microsoft has many detailed feature rows, but licence choice usually comes down to desktop apps, security, device management and the exact collaboration/Copilot bundle required.

When Business Basic makes sense

Business Basic is a strong fit for users who spend most of their time in a browser or on mobile devices. It provides business email, OneDrive, SharePoint and the web/mobile Office applications. For frontline staff, shared-device users or people who do not need the installed Office suite, it can be a cost-effective licence.

The common mistake is assuming “Microsoft 365” automatically means the familiar installed desktop version of Outlook, Word and Excel. Business Basic does not provide those desktop apps.

Typical Basic users

• staff working mainly in browser-based line-of-business systems;
• light email and Teams users;
• frontline or mobile roles;
• users who can work comfortably in the web versions of Office.

When Business Standard makes sense

Standard is usually the natural fit for office-based users who need the installed desktop applications. That matters for people working heavily in Excel, Outlook, PowerPoint or local Office documents, and for workflows that rely on desktop add-ins.

At the time of writing, Microsoft’s UK catalogue is prominently showing a “Business Standard with Copilot” package. This is exactly why businesses should not copy an old licence list from a blog and assume it still matches the current Microsoft catalogue.

Typical Standard users

• finance, administration and management staff using desktop Office daily;
• people who regularly work offline;
• users who need Outlook desktop and Office add-ins;
• businesses that need the full Office productivity suite but manage security through other tools.

When Business Premium is worth considering

Premium is not simply “Standard with a few extras”. It moves Microsoft 365 further into business IT management by adding stronger identity, device and threat-protection capabilities. Microsoft’s current plan page highlights device security/management, advanced threat protection and data protection.

That becomes valuable when a company wants laptops to be centrally controlled, access to business data to follow policy, and user accounts to have more protection against phishing and other attacks. It also fits naturally with a managed IT support model because the licence gives the administrator more tools to enforce standards rather than relying on every user configuring their own device correctly.

Typical Premium use cases

• company-owned Windows laptops that need central management;
• hybrid teams using business data away from the office;
• businesses handling sensitive client or commercial information;
• organisations wanting a more consistent security baseline;
• companies trying to reduce the number of separate endpoint/security products.

Can you mix Microsoft 365 licences in one business?

Yes, and it is often sensible. A director with a managed laptop may justify Premium, an office administrator may need Standard, and a light-use mailbox may only need Basic. Licences are assigned per user.

The risk is uncontrolled complexity. If every employee has a different exception, onboarding and support become harder. We normally recommend defining a small number of role-based licence profiles and documenting why each exists.

A simple role-based example

The licence is only one part of the Microsoft 365 setup

A good tenant also needs sensible administration: MFA, admin-role separation, user lifecycle, SharePoint permissions, mailbox configuration, backup decisions, device standards and documentation. Those areas often have a bigger day-to-day impact than saving a few pounds on the licence itself.

Genius Creative’s Microsoft 365 service covers the licensing question alongside the wider setup, and can be combined with business IT support where users and devices also need ongoing help.

Microsoft 365 licence FAQs