VoIP Phone Systems for Small Businesses UK 2026: Costs, Best Setups & Providers Quick answer
VoIP phone systems for small businesses in the UK usually cost around £10 to £25 per user per month, depending on the provider, features, call bundles, contract length, support level and whether you need desk phones, mobile apps, Microsoft Teams Phone or call centre features.
For most small businesses, the best VoIP phone system is a cloud-based hosted VoIP system that works on mobiles, laptops and optional desk phones. This gives you business numbers, call forwarding, voicemail, hunt groups, call routing and remote working without needing an old-style office phone system.
The best setup depends on how your business takes calls:
Sole traders usually need a low-cost VoIP app or virtual business number.
Small teams usually need hosted VoIP with call forwarding, voicemail and shared numbers.
Customer-facing SMEs usually need call queues, auto attendant, reporting and call recording.
Microsoft 365 users may want to compare Microsoft Teams Phone against hosted VoIP.
Sales and support teams may need contact centre VoIP rather than a basic small business phone system.
With the UK PSTN switch-off due by January 2027, small businesses still using traditional landlines should compare VoIP options before they are forced to migrate.
👉 Compare small business VoIP quotes for your business and save up to 40% →
Contents
What is VoIP?
Our Favourite VoIP Phone Systems For Small Businesses
Benefits of VoIP Phone Systems for Small Businesses
Features to Look for in a VoIP Phone System for Small Businesses
How to Choose the Right VoIP Phone System for Your Small Businesses
Key Takeaways
Most small business VoIP systems cost around £10 to £25 per user per month.
The cheapest setup is usually an app-based VoIP service, but it may not offer enough call handling for a growing business.
Hosted VoIP is usually the best all-round option for small businesses replacing landlines.
Microsoft Teams Phone can suit businesses already using Microsoft 365, but it is not automatically cheaper once calling plans, setup and support are included.
Microsoft says its UK/Canada Teams Phone domestic calling plans include a phone number and 3,000 outbound domestic calling minutes, with prices excluding VAT.
Small businesses do not usually need expensive contact centre tools unless they run sales, booking or support teams.
Desk phones are optional. Many teams can use mobiles, laptops and headsets instead.
The UK PSTN switch-off means old landlines and ISDN services need to be replaced before January 2027.
The most important small business VoIP features are business numbers, call routing, voicemail, mobile apps, call groups and reliable support.
Comparing providers is the safest way to avoid paying for features you do not need.
The best provider depends on your call volume, team size, customer service needs and existing software.
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: July 2026
Small business VoIP at a glance
Business type Best VoIP setup Typical monthly cost
Sole trader
VoIP app or simple cloud phone system
£8-£15 per user
Low cost, mobile app, business number
2–5 person team
Hosted VoIP / Cloud PBX
£10-£20 per user
Call forwarding, voicemail, shared number
6–20 person SME
Hosted VoIP with call routing
£12-£25 per user
Auto attendant, call groups, reporting
Remote team
Cloud VoIP or UCaaS
£12-£30 per user
Mobile apps, desktop apps, video and messaging
Microsoft 365 business
Microsoft Teams Phone or hosted VoIP
£8-£25+ per user
Teams integration, external calling, call handling
Sales or support team
VoIP with contact centre features
£30-£100+ per user/agent
Queues, recording, CRM integration, analytics
Shop, salon or clinic
Hosted VoIP with optional desk phone
£10-£25 per user
Reliable answering, voicemail, opening hours routing
Need a small business VoIP phone system? This quote service is best for UK businesses that want to compare:
small business VoIP systems
hosted VoIP
cloud phone systems
Cloud PBX
business phone numbers
VoIP apps
VoIP desk phones
Microsoft Teams Phone
SIP trunking
call recording
call queues
auto attendant menus
CRM phone integrations
remote working phone systems
landline replacement before the PSTN switch-off
What is VoIP? A small business VoIP phone system lets your business make and receive calls over the internet instead of using traditional phone lines, and, in practice, this means your business can take calls using:
mobile apps
desktop apps
laptops
headsets
VoIP desk phones
Microsoft Teams
cloud phone systems
For a small business, VoIP is not just about making cheaper calls. It can help you look more professional, answer more enquiries, route calls properly and avoid missed opportunities.
A good small business VoIP setup can give you:
a professional business phone number
local or national numbers
call forwarding
voicemail to email
mobile and desktop calling
hunt groups
auto attendant menus
call recording
opening hours routing
call reporting
CRM integration
VoIP Costs for Small Businesses UK 2026
Business Size Monthly Cost per User Typical Setup
1-3 users
£10-£15
App-based/simple setup
3-10 users
£12-£20
VoIP + basic features
10+ users
£15-£25
Advanced features
What affects pricing?
Number of users
Call bundles
Features (CRM, analytics, recording)
Contract length
👉 Get tailored quotes based on your business size →
What small businesses actually need from VoIP Small businesses usually do not need the most expensive phone system. They need a system that helps them answer calls reliably and avoid paying for unnecessary features.
Feature Why it matters
Business phone number
Separates business and personal calls
Mobile app
Lets you answer business calls away from the office
Desktop app
Useful for office, remote and hybrid workers
Voicemail to email
Reduces missed messages and speeds up response
Call forwarding
Sends calls to the right person or device
Hunt groups
Rings multiple people until someone answers
Opening hours routing
Sends calls to voicemail or another number outside business hours
Auto attendant
Gives callers options such as sales, accounts or support
Call reporting
Shows missed calls, call volume and busy periods
UK support
Important if missed calls mean lost sales
Our Favourite VoIP Phone Systems For Small Businesses Benefits of VoIP Systems For Small Businesses
They can save you money
They are incredibly scalabkle, making them ideal for a growing business
They are flexible – you can take/receive calls from anywhere with an internet connection (hello remote working!)
They can integrate with existing sysrtems
THey offer a great range of features that you can usually pick and choose to suit your needs,
How to Choose the Right VoIP Phone System
Firstly, we think you should start by understanding your business’s specific communication needs.
Consider the costs of the hardware, subscription, number of users, features etc.
Look at some different VoIP providers to compare their offerings, customer service, and pricing.
Many VoIP providers offer free trials or demos and we suggest you use these before making a commitment.
Choose a VoIP system that can grow with your business.
Best VoIP setup by business size
Sole traders and one-person businesses
Best setup: VoIP app, virtual number or simple hosted VoIP
This usually works well if you want:
a separate business number
calls on your mobile
voicemail
low monthly cost
no desk phone
easy setup
Avoid paying for:
multiple desk phones
advanced call queues
contact centre analytics
expensive implementation
complex call routing
Small teams with 2-5 users
Best setup: Hosted VoIP with shared numbers and call routing
This usually works well if you need:
one main business number
multiple users
hunt groups
voicemail to email
mobile and desktop apps
simple call routing
optional desk phones
This is often the best balance of cost and professionalism for small businesses.
Growing SMEs with 6-20 users
Best setup: Hosted VoIP or UCaaS with reporting and admin controls
This usually works well if you need:
multiple departments
call routing
auto attendant
call groups
basic analytics
call recording for selected users
CRM integration
onboarding support
At this stage, the provider’s support quality becomes more important.
Small businesses with sales or support teams
Best setup: VoIP with contact centre features
This usually works well if you need:
call queues
call recording
call analytics
missed call reporting
CRM screen pops
call tags or notes
manager dashboards
sales or support performance tracking
Do not choose this if you only need basic inbound and outbound calling.
Best VoIP setup by business type
Business type Best VoIP setup Why
Tradesperson
Mobile-first VoIP app
Lets you answer business calls on the road without using your personal number
Consultant
Virtual number or hosted VoIP
Gives you a professional number, voicemail and simple call handling
Café or restaurant
Hosted VoIP with opening hours routing
Useful for bookings, takeaway calls and missed call management
Retail shop
Hosted VoIP with desk phone
Provides a reliable shop number, voicemail and optional call forwarding
Salon or clinic
Hosted VoIP with voicemail and call routing
Helps manage appointment calls and busy periods
Estate agent
VoIP with call recording and CRM integration
Useful for sales calls, viewings and client records
Accountancy firm
Hosted VoIP or Teams Phone
Good for professional call handling and hybrid working
Recruitment agency
VoIP with CRM integration
Call volume, logging and caller history matter
Online business
VoIP app or cloud phone system
Keeps support and sales calls separate from personal phones
Remote team
Cloud VoIP, UCaaS or Teams Phone
Works across mobiles, laptops and multiple locations
Small business VoIP costs UK 2026 Small business VoIP pricing usually depends on users, features and call bundles.
Business size Typical cost Likely setup
1 user
£8-£15/month
VoIP app, virtual number or basic hosted VoIP
2-5 users
£10-£20 per user/month
Hosted VoIP with call routing and apps
6-20 users
£12-£25 per user/month
Cloud PBX with reporting, call groups and support
20+ users
£15-£30+ per user/month
Hosted VoIP, UCaaS or mixed setup
Sales/support users
£30-£100+ per user/month
Contact centre or advanced call management
What affects small business VoIP pricing?
Costs can increase if you add:
desk phones
call recording
CRM integrations
advanced call queues
international calling
contact centre tools
multi-site support
setup and number porting
premium support
business broadband upgrades
Costs can reduce if you:
use mobile and desktop apps instead of desk phones
only pay for users who need calling
choose basic hosted VoIP rather than UCaaS
avoid contact centre tools unless needed
compare providers before renewing
bundle VoIP with broadband where cheaper
Get tailored VoIP quotes based on your users, call volume and features.
Hosted VoIP vs Microsoft Teams Phone
Feature Hosted VoIP
Best for
Most small businesses replacing landlines
Businesses already using Microsoft 365
Setup
Usually provider-led
May need Microsoft admin, calling plan or routing setup
Calling features
Strong traditional phone system features
Strong Teams integration, varies by setup
Desk phones
Usually supported
Teams-certified devices may be needed
Mobile app
Usually included
Call queues
Often available
Available, but setup may be more involved
CRM integration
Provider-dependent
Depends on Microsoft setup and integrations
Support
Usually telecoms provider support
May involve Microsoft partner or IT support
Best fit
Shops, offices, clinics, salons, SMEs
Hybrid teams already using Teams daily
Common Mistakes Small Businesses Make Paying for features they don’t use
Not comparing providers
Choosing long contracts too early
Sticking with expensive landlines
👉 Most SMEs overpay simply by not comparing quotes
Is VoIP Worth It for Small Businesses? Yes! VoIP is usually worth it for small businesses that rely on phone calls.
VoIP is especially useful if you:
take customer calls regularly
want a professional business number
have more than one person answering calls
want to separate business and personal calls
work remotely or on the move
want to reduce landline costs
want voicemail to email
need call forwarding
want to avoid missed calls
need to prepare for the PSTN switch-off
It probably will not be worth it if:
you rarely take calls
you only need a personal mobile
you do not need a business number
your broadband is unreliable and cannot be upgraded
you choose a system that is too complex for your needs
Bottom line For most UK small businesses, VoIP is the best replacement for landlines because it is flexible, scalable and easier to manage.
The right provider depends on how many users you have, how important calls are to your business and whether you need simple calling or advanced features.
Compare small business VoIP quotes before choosing a provider.
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FAQs How much does VoIP cost for small businesses?
Small business VoIP usually costs around £10 to £25 per user per month. Basic app-based systems may cost less, while advanced systems with call recording, CRM integration or contact centre features can cost more.
Is VoIP better than a landline for small businesses?
Yes, in most cases. VoIP is usually more flexible than a traditional landline and can support remote working, mobile apps, call forwarding and easier scaling.
Can I use VoIP on my mobile?
Yes. Most small business VoIP providers offer mobile apps so you can make and receive business calls on your mobile without giving out your personal number.
Do I need special equipment for VoIP?
No. Many small businesses use VoIP through mobile apps, desktop apps and headsets. Desk phones are optional.
Can I keep my business number when switching to VoIP?
Yes, in most cases. This is called number porting. It usually needs to be planned before cancelling your old service.
How quickly can a small business set up VoIP?
Simple VoIP systems can often be set up quickly, while larger migrations with number porting, call routing and desk phones may take longer.
What is the best VoIP system for a sole trader?
A sole trader usually needs a low-cost VoIP app, virtual number or simple hosted VoIP service with voicemail and mobile calling.
What is the best VoIP system for a small team?
A small team usually needs hosted VoIP with a shared business number, call forwarding, voicemail, hunt groups and mobile/desktop apps.
Is Microsoft Teams Phone good for small businesses?
Microsoft Teams Phone can be good for small businesses already using Microsoft 365. However, it should be compared against hosted VoIP because setup, calling plans and support can affect the total cost.
Do small businesses need call recording?
Some do, especially sales, support, recruitment, estate agency, finance or regulated businesses. Many small businesses do not need call recording for every user.
Does VoIP work from home?
Yes. VoIP can work from home if the user has a stable internet connection and the right app, headset or desk phone.
What broadband speed do I need for VoIP?
VoIP does not usually need huge bandwidth, but it does need a stable connection with low latency, low jitter and minimal packet loss.
Will the PSTN switch-off affect small businesses?
Yes, if your business still uses traditional landlines, ISDN or PSTN-reliant devices. GOV.UK says PSTN-reliant devices, including UK landlines, need to be upgraded to digital technology by January 2027.
What is the cheapest VoIP option for small businesses?
The cheapest option is usually an app-based VoIP service or basic hosted VoIP plan. However, the cheapest option may not include the support, call quality or features you need.
How do I compare small business VoIP providers?
Compare monthly cost, users, call bundles, support, contract length, mobile apps, desk phones, number porting, call routing, integrations and setup costs.
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Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
