Google Workspace vs Microsoft 365 for UK Small Businesses in 2026: Which Is Actually Worth It?
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Introduction
Choosing between Google Workspace and Microsoft 365 feels simple until you start comparing pricing pages — and then suddenly you’re deep in plan tiers, per-user costs, Teams-inclusive and Teams-exclusive variants, and features you’re not sure you need.
Both platforms will keep your small business running. Both have email, cloud storage, video calls and collaboration tools. But they’re built on genuinely different philosophies, and they are no longer close on price at the tier most small businesses actually buy.
This article cuts through it with UK list prices ex-VAT, the practical differences that matter to sole traders and small teams, and a clear recommendation based on the type of business you run.
The Basics: What You’re Actually Buying
Google Workspace is cloud-first and browser-based. You work in Gmail, Docs, Sheets, Slides and Meet, all in your browser, all stored in Drive. There are no downloadable desktop apps from Google itself. If your internet drops, access is limited, though offline mode exists for Docs and Sheets.
Microsoft 365 is hybrid. The cloud tools — Outlook, Teams, SharePoint, OneDrive — are there, and from Business Standard upwards you also get full desktop Word, Excel, PowerPoint and Outlook installed on up to five devices per user. If you live in Excel or work offline regularly, that matters enormously.
Pricing: Google Workspace vs Microsoft 365 in the UK
All figures below are per user per month, excluding VAT, on annual billing.
| Plan | Price |
|---|---|
| Google Workspace Business Starter | £5.90 |
| Google Workspace Business Standard | £11.80 |
| Google Workspace Business Plus | £18.40 |
| Microsoft 365 Business Basic, with Teams | £5.40 |
| Microsoft 365 Business Basic, without Teams | £4.20 |
| Microsoft 365 Business Standard, with Teams and Copilot | £18.10 |
| Microsoft 365 Business Standard, without Teams | £15.60 |
| Microsoft Teams Essentials, standalone | £3.10 |
Two Things That Table Tells You
Microsoft is cheaper at entry level. Google is substantially cheaper at the standard tier.
At the bottom, Business Basic at £5.40 undercuts Google Business Starter at £5.90 by 50p, and the Teams-free version at £4.20 undercuts it by £1.70 — making it the cheapest professional email option here.
Move up a tier and the picture reverses hard. Google Business Standard is £11.80. Microsoft Business Standard is £18.10. That’s a £6.30 gap per user per month — £75.60 a year per person, or £378 a year for a five-person team. Any article telling you these two are priced similarly at comparable tiers is working from older figures.
Microsoft now sells Teams separately, and it shows in the price. Business Basic is £5.40 with Teams and £4.20 without, so Teams is effectively a £1.20 line item. Business Standard has the same split at £18.10 and £15.60. This matters if you use Slack or Google Meet for communication and only want the Office apps — you can save by taking the Teams-free variant, and Microsoft also sells Teams Essentials standalone at £3.10 if you want it without the rest.
Business Standard now bundles Copilot, Microsoft’s AI assistant, which accounts for a good part of that £18.10. Whether it justifies the premium over Google depends entirely on whether you’d use it — but it’s a real feature difference, not just inflation.
Microsoft has repriced its UK business plans within the past year. If you’re on an existing annual agreement you may still be on an older rate, so check your renewal date and what it renews at rather than assuming your current cost continues.
Feature-by-Feature Comparison
Desktop Apps: The Biggest Practical Difference
This remains the single most decisive factor for many small businesses.
Microsoft 365 includes full desktop Word, Excel, PowerPoint and Outlook from Business Standard upwards. They run locally, work offline, and are the versions most accountants, clients and suppliers will send you files in.
Google Workspace has no downloadable equivalent. You work in the browser. Docs and Sheets are capable, but a complex Excel file with macros, pivot tables or advanced formatting can lose fidelity when opened in Sheets — and that causes real problems.
Verdict: If your team works in Office files heavily, or you regularly exchange documents with people who do, Microsoft wins. But be clear about what it costs you: the cheapest route to desktop Office here is Business Standard at £15.60 without Teams, which is still £3.80 a month more than Google Business Standard.
Storage
This is where Google pulls ahead at the mid-tier. Google’s pooled storage allowances at Business Standard and above are considerably more generous than Microsoft’s per-user OneDrive allocation, and they pool across your team rather than being locked to individuals.
If you store large files — video, design assets, big datasets — Google gives you meaningfully more for less money at the Standard tier. Check both vendors’ current allowances, as these are adjusted more often than prices.
Email and Calendar
Both are excellent. Gmail and Google Calendar are clean, fast and reliable. Outlook and Exchange are more feature-rich for shared calendars, delegation, inbox rules and complex diary management.
For sole traders or very small teams, Gmail is perfectly adequate. For businesses with PAs, shared inboxes or heavy meeting scheduling, Outlook’s tools are more powerful.
Video Conferencing
Google Meet is built into every Workspace tier. Simple, reliable, with recording and noise cancellation from Business Standard.
Microsoft Teams is included on the Teams-inclusive variants of Business Basic and above, and sold standalone as Teams Essentials at £3.10. Teams is more powerful as an all-in-one hub — chat, channels, files, meetings — but has a steeper learning curve.
For small teams wanting quick video calls, Meet is simpler and comes as standard. For teams wanting an internal communications hub to replace Slack, Teams is stronger — and worth noting that £3.10 for Teams Essentials is a fraction of what a standalone chat or conferencing tool typically costs.
Security and Compliance
At the top tier, Microsoft pulls ahead. Business Premium bundles Intune for mobile device management, Defender for Business for endpoint protection, and premium identity management with conditional access. That’s enterprise-grade security at a small-business price point, and genuinely impressive value if you handle sensitive client data, work in a regulated sector, or have staff using personal devices.
Google Workspace Business Plus at £18.40 includes enhanced security controls and Vault for eDiscovery and archiving, but doesn’t bundle endpoint management in the same way.
Confirm Business Premium’s current UK price directly with Microsoft — it sits above the tiers priced above and has been subject to the same repricing.
Making Tax Digital and Accounting Software
Neither platform is accounting software. You’ll still need QuickBooks, Xero, Sage or FreeAgent for bookkeeping and HMRC submissions under Making Tax Digital.
Both integrate well with all major UK accounting tools. Excel has a slight edge for businesses that use spreadsheets as part of their bookkeeping workflow before data moves into cloud accounting — but that alone isn’t a reason to choose one platform over the other.
Who Should Choose Google Workspace?
Google Workspace tends to fit better if:
- You’re a sole trader or small team who lives in the browser and doesn’t need desktop apps
- Your business is document-light — email, meetings, simple documents, not heavy spreadsheet work
- Storage matters and you want pooled capacity rather than per-user allocations
- You already use Google tools personally and your team is comfortable with them
- You want the mid-tier without paying a premium — at £11.80 against Microsoft’s £18.10, Business Standard is the clear value option
Best plan: Business Standard at £11.80. The storage uplift over Starter is worth it for most teams, and it’s £6.30 a month cheaper per person than Microsoft’s equivalent.
Who Should Choose Microsoft 365?
Microsoft 365 is stronger if:
- Your team relies on Word, Excel or PowerPoint, especially if you exchange files with clients, suppliers or accountants using Office
- You work offline regularly — trains, poor signal, or simple preference for desktop apps
- You want Teams as your central communications hub
- You’d genuinely use Copilot, which is bundled into Business Standard
- Security is a priority and Business Premium’s Intune and Defender bundle appeals
- You want the cheapest professional email available — Business Basic without Teams at £4.20 is the lowest entry price on this page
Best plan: Business Basic at £5.40 if you don’t need desktop apps, or Business Standard at £18.10 if you do. If you want desktop Office but already have a chat tool, the Teams-free Standard variant at £15.60 saves you £2.50 a month.
FAQ
Is Google Workspace cheaper than Microsoft 365 for UK small businesses in 2026?
It depends entirely on the tier. At entry level Microsoft is marginally cheaper — Business Basic at £5.40 with Teams, or £4.20 without, against Google Business Starter at £5.90. At the standard tier Google is significantly cheaper: £11.80 against Microsoft’s £18.10, a £6.30 monthly gap per user. So if you need desktop Office apps you’ll pay a real premium; if you don’t, Google wins on cost at the tier most small teams buy.
Why is Microsoft 365 Business Standard so much more expensive than it used to be?
Two reasons. Microsoft has repriced its UK business plans, and Business Standard now bundles Copilot, its AI assistant. If you don’t want Copilot or Teams, the Teams-free variant at £15.60 is cheaper, but there’s no route back to the sub-£11 pricing this tier once carried.
Do I have to pay for Teams with Microsoft 365?
No. Microsoft sells Teams-inclusive and Teams-free versions of its business plans — Business Basic is £5.40 with Teams and £4.20 without, a £1.20 difference. Teams Essentials is also available standalone at £3.10 if you want Teams without a full Microsoft 365 subscription.
Can I use Microsoft Office files with Google Workspace?
Yes, with caveats. Docs, Sheets and Slides open and edit .docx, .xlsx and .pptx files, but complex formatting, macros and advanced features don’t always survive a round trip. Fine for occasional use; a meaningful limitation for teams regularly working on complex Office documents.
Which is better for a sole trader in the UK?
On cost, Microsoft 365 Business Basic at £5.40 with Teams, or £4.20 without, is the cheapest way to get professional email on your own domain. Google Business Starter at £5.90 is 50p more and gives you Meet, Drive, Docs and Calendar in a simpler package. Either works. The question that should decide it is whether you’ll ever need desktop Excel — because upgrading to get it costs £18.10 with Microsoft, and isn’t available at all from Google.
Do either of these help with Making Tax Digital?
No. Neither is accounting software, so neither handles MTD submissions to HMRC. You’ll need Xero, QuickBooks, FreeAgent or Sage for that. Both platforms integrate well with UK accounting tools and work fine alongside whichever MTD-compatible software you choose.
Conclusion: Our Honest Recommendation
The old answer to this question was “they cost about the same, so pick on features.” That’s no longer true, and it changes the recommendation.
At the standard tier, Google Workspace is the value choice by a clear margin — £11.80 against £18.10, which for a five-person team is £378 a year. If your work doesn’t depend on desktop Office apps, that gap is difficult to justify away.
Microsoft 365 remains the right choice if you genuinely need desktop Word and Excel, or if you’d use Copilot and Teams as a proper communications hub. Those are real differentiators, and for a business that exchanges complex spreadsheets with accountants and clients daily, £6.30 a month is a reasonable price for not fighting file compatibility. Just make the decision knowing what the premium is.
At entry level it’s close enough not to matter much. Business Basic at £5.40, or £4.20 without Teams, against Google Starter at £5.90. Choose on which interface your team prefers rather than on 50p.
The practical test: open the last twenty attachments you received. If most are Excel workbooks with anything complicated in them, go Microsoft. If they’re PDFs and simple documents, go Google and keep the £378.
Both platforms offer free trials — test whichever you’re considering with your actual team before committing to an annual plan.
Pricing and features correct at time of writing. Plans and capabilities are subject to change — always confirm current details on the provider’s website before purchasing.