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Which Microsoft Copilot is best for a small business?
Short answer
For most UK small businesses already on Microsoft 365, start with Copilot Chat, which is free with eligible business plans. If you want Copilot inside Word, Excel, Outlook and Teams, working with your own files, Microsoft sells Microsoft 365 Business Standard with Copilot at £18.10 per user a month, paid yearly, or adds Copilot Business to an existing plan.
The options
| Option | UK price from Microsoft | What you get |
|---|---|---|
| Copilot Chat | No extra cost with eligible Microsoft 365 business plans | Secure AI chat with web answers, file uploads (limits apply), enterprise data protection |
| Microsoft 365 Copilot Business (add-on) | Shown on Microsoft's page; first-year discount for existing customers buying 1 July to 31 December 2026 | Copilot in Word, Excel, PowerPoint, Outlook and Teams, grounded in your work data; Researcher and Analyst agents |
| Microsoft 365 Business Standard with Copilot | £18.10 per user a month, paid yearly | Office apps, email, Teams and Copilot in one plan |
| Microsoft 365 Business Premium with Copilot | £24.60 per user a month, paid yearly | As Standard, plus stronger security and device management |
| Microsoft 365 Personal or Family (sole traders on a home plan) | £8.49 or £10.49 a month in the UK App Store; Premium £18.99 | Copilot in the apps needs an AI credits plan or Premium |
Business plans are for up to 300 users and auto-renew annually. Microsoft gives a 7-day window to cancel for a prorated refund on the add-on offer.
Which to choose
- Sole trader on a home Microsoft 365 plan: check whether Copilot is already switched on in your apps before upgrading. Business plans give you better data terms if you hold customer data.
- Small team on Microsoft 365 Business: use Copilot Chat for a month and see who actually uses it, then buy the add-on only for those people.
- New business choosing a suite: compare with Google Workspace, which includes Gemini.
On privacy, Microsoft says business prompts and responses aren't used to train its models. See are Microsoft Copilot chats private?
Related questions
Which Copilot is best for business in 2026?
For most small firms: Copilot Chat first, then Copilot Business for the people who live in Outlook, Excel and Teams.
Is Microsoft Copilot free?
The consumer Copilot app and Copilot Chat for business users are free. See is Microsoft Copilot free?
Can Copilot analyse my spreadsheets?
Yes. See can Copilot analyse Excel data?
Sources
- Microsoft: Copilot business plans and pricing (UK)
- Microsoft: Copilot for business (UK), including FAQ and offer terms
- Microsoft Support: Copilot in Excel FAQ (licence requirements)
- Apple App Store (UK): Microsoft Copilot in-app purchases
Checked 17 October 2026. Rules and prices change, so check the source before you rely on it. This is general information, not legal, tax or financial advice.
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