Google Workspace vs Microsoft 365 for Small Business UK: Which One Should You Pick?

If you are weighing up Google Workspace against Microsoft 365 for your UK small business, you are in the right place. Both do the job. This article breaks down the four things that actually decide the choice.

Cost

Microsoft 365 is slightly cheaper at the entry tier. Google Workspace bundles its AI assistant into the mid tier without an extra subscription.

Microsoft 365 Business Basic is £5.75 per user per month. Google Workspace Business Starter is £5.90 per user per month. Both are ex VAT on annual commitments (May 2026 prices). That is roughly £69 versus £70.80 per user per year. Effectively the same.

At the mid tier the gap widens. Microsoft 365 Business Standard is £9.90 per user per month. Google Workspace Business Standard is £11.80 per user per month. Microsoft is around £20 cheaper per user per year.

The wrinkle is AI. Google bundles Gemini into Business Standard. Microsoft charges extra for Copilot as a separate licence. If you plan to use AI in documents, Workspace’s price is the all-in price. Microsoft’s is not.

Storage

Microsoft 365 gives each user a bigger personal mailbox. Google Workspace gives a much bigger total pool at the mid tier.

Microsoft 365 Business Basic includes a 100 GB mailbox per user (raised from 50 GB in 2026) and 1 TB of OneDrive per user. That is generous for a single user and stays generous as you add people.

Google Workspace Business Starter gives 30 GB of pooled storage per user. At the mid tier Workspace jumps to 2 TB pooled per user. A five-person company on Business Standard has 10 TB shared, versus 5 TB on the equivalent Microsoft tier.

For most one or two-person businesses the entry tier mailbox difference (30 GB vs 100 GB) is what matters. If you keep a lot of attachments, Microsoft wins on day one.

Desktop apps and document handling

Microsoft 365 wins on desktop apps. Google Workspace works fine in the browser if your clients do not send Word documents back.

Microsoft 365 Business Standard gives you the full desktop versions of Word, Excel, PowerPoint and Outlook. The entry tier does not. Opening a Word document with track changes in the desktop app preserves everything. Opening it in Google Docs converts the file and sometimes mangles formatting.

Google Workspace runs in the browser. Docs, Sheets and Slides are browser-native and work well on any device without installing anything. If most of your work lives in your own documents and you collaborate live, Workspace is the more cohesive experience.

For UK businesses dealing with accountants, solicitors and larger suppliers, Microsoft 365 makes document work easier. For businesses that mostly send PDFs, Workspace is enough.

Video calls and admin

Microsoft Teams handles larger meetings. Google Meet is simpler to use. Both are bundled.

Microsoft Teams supports up to 300 participants on the entry tier. Google Meet entry tier supports 100, rising to 150 at the mid tier with recording included. For webinars or company-wide calls, Microsoft has more headroom. For one-to-one or small-team calls, Meet’s lighter interface is friendlier.

Admin is where Google pulls ahead for non-technical owners. Workspace’s admin console has fewer settings and fewer ways to get lost. Microsoft 365’s admin centre is more powerful but more cluttered.

One thing most builders will not flag while you are choosing email: your website still needs to meet UK legal requirements. A privacy policy, cookie notice, terms and conditions, and the right business information in the footer. Email provider has no effect on that. Run your site through our free website compliance checker to see what is missing.

Which one is right for you?

For most UK small businesses already using Office documents with clients, Microsoft 365 is the simpler choice. For everyone else, Google Workspace.

Pick Microsoft 365 if you regularly receive Word or Excel files, or you want a bigger personal mailbox without paying mid tier.

Pick Google Workspace if your team collaborates live on shared docs, you want AI included at the mid tier without paying for Copilot separately, or you find Microsoft’s admin centre intimidating.

For the actual setup, our step-by-step guide to getting a custom email domain working walks through the four steps. For the cheapest options across the market, our ranked list of the cheapest professional email options covers seven providers from £10 a year. If you have not yet decided whether you need a professional email at all, our pillar guide explains what is legally required and what is just recommended.

Get the whole stack handled for you

If you would rather skip the choice and have email, domain and website set up together, Duport’s website build starts from £360. Mention this article when you get in touch and we’ll honour the £144 rate. That covers a mobile-friendly site, live in 72 hours, with about 30 minutes of your time.

For those also registering a limited company, the full bundle is £244 upfront. That covers company formation, your website, email, and seven compliance tools together. Annual renewal is £94.

You can still bring your own email service if you have a preference.

FAQs

• Can I move from Google Workspace to Microsoft 365 later, or vice versa?

Technically yes, but you need to migrate your mail, calendar and contacts manually or with a paid tool, which is why most people stick with their first pick.

• Do I get Microsoft Word and Excel desktop apps with the entry tier?

No, desktop apps only come with Business Standard at £9.90 per user per month; the £5.75 entry tier is web and mobile only.

• Is Google Workspace better than Microsoft 365 for one-person businesses?

For one-person businesses that do not need desktop Word and Excel, Workspace is usually simpler because admin is lighter and AI is bundled.

• Can I use my Gmail or Outlook address with Workspace or Microsoft 365?

Not directly: both require a custom domain, though you can forward mail from your old free address to your new one.

• Is my Wix or Squarespace website legally compliant in the UK?

Not automatically. UK law requires your website to include a privacy policy, a cookie notice, clear terms and conditions, and specific business information (such as your registered company name and number if you’re a limited company). Most website builders include template pages for some of these, but they don’t check whether your content is accurate or complete. Use our free website compliance checker to see what your site has and what it’s missing.

Rebecca