Our picks, by what you need
Best all-rounder: Microsoft 365 Business Basic
£5.40 a user on an annual plan (£6.48 paying monthly) buys a 100 GB Exchange mailbox, Teams, 1 TB of OneDrive and the web and mobile Office apps. It works natively with Outlook, shared calendars and shared mailboxes, and most IT providers know it inside out. The catches: the lowest price needs a year’s commitment, and you get the desktop Office apps only on Business Standard at £10.80. Our plan comparison explains the tiers.
Best for teams that live in Gmail: Google Workspace
Business Starter is £5.90 a user on an annual plan or £7.00 on a flexible plan, with 30 GB per user shared between Gmail and Drive. If your team already works in Gmail and Google Docs, it is excellent. If they depend on Outlook, Excel or complex Word documents, Microsoft usually fits better — see Google Workspace vs Microsoft 365.
Cheapest full Exchange mailbox: Exchange Online Plan 1
Microsoft’s email-only plan: a 50 GB Exchange mailbox for £3.10 a user on an annual plan, with no Teams or Office apps. For businesses that want Outlook and shared calendars at the lowest price, it is hard to beat. Our Plan 1 vs Plan 2 guide covers the details.
Cheapest overall: Zoho Mail
Mail Lite is £0.80 a user (5 GB) or £1 (10 GB) on an annual plan only, and Mail Premium is £3.20 with 50 GB. Zoho is a capable, low-cost choice for small teams happy with its own apps. There is also a free plan for up to five users, with real limits — see free business email.
Budget bundles from UK hosts: IONOS, Fasthosts and 123-reg
IONOS and Fasthosts sell five 2 GB mailboxes for £1 a month during an introductory period, rising to £2.50 (IONOS) and £3 (Fasthosts) for all five afterwards. 123-reg’s Pro Light is £1.99 a mailbox in the first year and £3.99 after, with 10 GB. Fine for light use; check the renewal price and what the mailbox connects to before committing. Our cheap email hosting guide lists every plan.
UK-hosted Exchange with no annual commitment: MyExchangeServer
That is us, so weigh this accordingly. £8.00 + VAT a mailbox, monthly, with 50 GB that extends in 50 GB blocks, Exchange hosted in UK data centres, the SolidCP control panel, free migration and a named UK engineer. It is not the cheapest: Microsoft 365 Business Basic costs less and has a bigger mailbox, and the new Outlook for Windows does not support hosted Exchange from any provider. It suits businesses that want Exchange without the Microsoft 365 suite, their email in the UK, and someone who picks up the phone. Our honest comparison with Microsoft 365 sets out when each makes sense.
Side by side
| Provider and plan | Regular price (ex VAT) | Mailbox storage | Notes |
|---|---|---|---|
| Microsoft 365 Business Basic | £5.40 a user (annual), £6.48 monthly | 100 GB | Exchange mailbox, Teams, OneDrive, web Office apps |
| Microsoft Exchange Online Plan 1 | £3.10 a user (annual) | 50 GB | Email only |
| Google Workspace Business Starter | £5.90 annual, £7.00 flexible | 30 GB, shared with Drive | Gmail, Meet, Drive, Docs |
| Zoho Mail Lite | £0.80–£1 a user (annual only) | 5–10 GB | Mail Premium £3.20 with 50 GB |
| IONOS, 5 mailboxes | £2.50 for five, after £1 for 12 months | 2 GB each | Also a 12 GB single mailbox at £5 |
| Fasthosts Mail Basic 5 | £3 for five, after £1 for 6 months | 2 GB each | Mail Business: 50 GB at £7 a mailbox |
| 123-reg Pro Light | £3.99 a mailbox, after £1.99 for the first year | 10 GB | Billed annually; larger plans to 100 GB |
| MyExchangeServer hosted Exchange | £8.00 a mailbox, monthly | 50 GB, extendable | Exchange in UK data centres, free migration |
How to choose in four questions
- Does your team need Outlook, shared calendars and shared inboxes? If yes, choose Exchange — Microsoft 365, Exchange Online or hosted Exchange — or Google Workspace. Basic mailbox bundles rarely do all three well.
- Do you need Teams and the Office apps too? If yes, Microsoft 365 is better value than buying email separately.
- Can you commit for a year? The lowest Microsoft and Google prices need annual commitments; monthly plans cost more.
- Who do you call when it breaks? Big providers offer ticket-based support; smaller and local providers usually give you a named person. Decide how much that is worth to you.
How we compared
We included the providers UK businesses most often ask us about, and checked every price on the provider’s own UK website on 5 October 2026. We have not included every feature, only the ones that most often decide the choice. Prices and offers change; check the provider’s page before you buy, and tell us if anything here has gone out of date.