Microsoft 365 licence renewal: a UK checklist

Most Microsoft 365 spend problems are decided at renewal. Sign quickly and the bill carries forward whatever has built up. Use this checklist in the 90 days before your renewal date. Terms differ between agreements and Microsoft changes its commercial rules from time to time, so confirm each point against your own contract and Microsoft’s current terms.

How a Microsoft 365 renewal works

Each subscription has an end date. Unless recurring billing has been turned off, it renews automatically for the same term and the same number of licences, at the price that applies on the renewal date. You can see the date, and turn recurring billing on or off, in the Microsoft 365 admin centre under Billing; Microsoft explains the steps in its guide to renewing Microsoft 365 for business. If you buy through a partner, the partner manages the renewal, so ask them for the same facts.

Why 90 days

Cleaning up licences (see Microsoft 365 licence management and the Microsoft 365 licence cost check) takes a few weeks, because you need to confirm with managers before removing anyone. Comparing quotes takes time too, and so does any change of plan. If you start the week before, the renewal decides for you. If you start three months out, you have time to collect facts, ask questions and make changes on your own terms.

Understand what you have

1. Find the renewal date and the term. Microsoft’s current commercial model for most small business purchases offers monthly, annual and multi-year terms. Know which one you are on, and when each subscription renews. They are often not all the same date.
2. Check the billing frequency. Paying monthly on an annual commitment can carry a premium compared with paying annually. Ask what it costs you, and whether the difference is worth the flexibility.
3. Check what happens automatically. Many agreements auto-renew. Find the switch, and the notice period for turning it off. Make a diary entry for the date, not the month.
4. Know your change rules. Adding licences mid-term is usually easy. Reducing them is often restricted, or only possible within a short window after purchase or renewal. Find out which rules apply to you, because they decide how much a mistake costs.
5. Confirm who you buy through. If you buy through a partner, know who invoices you, on what terms, and how you would move if you wanted to. A change of supplier is normally possible, so ask how it works before you need it.

Clean up before you commit

6. List the licences by person and plan. Export the list from the Microsoft 365 admin centre (how subscriptions and licences fit together) and compare it with your staff list from HR or payroll.
7. Remove leavers and unused accounts. The usage reports show last activity for each service, and Microsoft Entra ID shows the last sign-in for each user. Both help you find licences that nobody is using.
8. Find duplicates and overlaps. Two plans for one person, or an add-on for a feature already included in their plan.
9. Right-size by role. Is everyone on the plan their role needs? Higher tiers for the whole company are the usual culprit, but check what each plan includes before you move anyone down. Some security features are licensed per user.
10. Review add-ons and separate tools. Check whether you pay separately for something your plan already covers, and whether Copilot licences are actually used. If a Copilot seat has not been used for a month or two, ask why before you renew it.

Negotiate with facts

11. Ask for terms in writing, like for like. Compare price per user, term, billing frequency and included features across every quote. A lower monthly price on a shorter term is not the same as a lower price.
12. Align the renewal dates. One consolidated renewal date is easier to manage and gives you a stronger position than several scattered ones. Ask whether subscriptions can be brought together at the next renewal.

A timeline that works

• 90 to 60 days out: collect the facts. Renewal date, term, billing, licence list, usage reports, and a list of what people actually need.
• 60 to 30 days out: talk to managers about changes, and ask for quotes. Decide whether any plan should change.
• 30 to 14 days out: agree the final numbers, check the terms in writing, and confirm who signs.
• Final two weeks: make the changes, confirm the invoice matches the quote, and diarise the next review.

Questions to put to whoever supplies your licences

• What exactly renews, and on what date?
• What can we reduce during the term, and by when?
• What does paying monthly cost compared with paying annually?
• Is anything on our subscription something we no longer use?
• What would happen if we wanted to move to another supplier?

A good supplier answers these plainly. If the answers are vague, that is worth knowing before you sign.

Do not forget security

If you also want to check security settings at the same time, do it before renewal, because a cost review that removes a licence protecting your data is a false economy. Conditional Access, device management and email protection all depend on the plan a user holds. Read ten Microsoft 365 security controls to set first for the order of work, and Microsoft 365 plans compared for what each plan includes.

What good looks like

By renewal day you should be able to say how many people you have, what each group needs, what you are paying per plan, and what you are choosing to change. If you cannot, the renewal is deciding for you.

About this guide

Innoligo is an authorised Microsoft CSP partner. This checklist is general information and applies whoever you buy your licences from. An expert-led assessment covers the security and cost picture together.

Microsoft, Microsoft 365, Entra and Copilot are trademarks of the Microsoft group of companies. This guide is independent and is not published or endorsed by Microsoft.