VoIP Phone System Costs UK 2026: Prices, Setup Fees and Savings Quick answer
A business VoIP phone system in the UK typically costs £8 to £30 per user per month , excluding VAT.
Most small businesses pay approximately £10 to £25 per user per month for a hosted VoIP system with UK calling, mobile and desktop apps, voicemail, call transfers and basic call-management features.
Your total cost will depend on:
your number of users;
included call minutes;
the features each employee needs;
desk phone requirements;
installation and number-porting charges;
contract length;
integrations with Microsoft Teams, CRM or contact-centre software;
support and service-level requirements.
As a guide, a five-user business might pay £50 to £125 per month , while a 25-user business could pay approximately £250 to £625 per month before hardware, setup charges and VAT.
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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
Contents:
How much does a VoIP phone system cost?
What is included in a business VoIP price?
What affects the cost of a VoIP phone system?
Hosted VoIP costs
SIP VoIP costs
Hidden VoIP costs to check
Is cheap VoIP suitable for every business?
Business VoIP costs at a glance
VoIP cost
Basic hosted VoIP licence
Standard business VoIP package
Advanced unified communications
Contact-centre licence
£35-£100+ per agent/month
Microsoft Teams Phone Standard
From £7.70 per user/month
Teams Phone with UK domestic calling
From £13.10 per user/month
SIP trunk
Around £3-£10 per channel/month
VoIP desk phone
Around £50-£250 per device
Premium or executive handset
Headset
Number porting
Initial setup
£0-£500+
Call recording
CRM integration
Included or approximately £5-£25+ per user/month
International calling
Usually charged separately or through an add-on
(These are indicative market ranges rather than guaranteed quotes.)
How much does a VoIP phone system cost? For most UK SMEs, the central cost is a monthly licence for each user.
A basic user will likely only need:
a business telephone number;
inbound and outbound calls;
voicemail;
call transfer;
a mobile or desktop calling app.
A receptionist, sales employee or customer-service agent could also need:
call queues;
hunt groups;
call recording;
analytics;
supervisor tools;
CRM integration;
advanced call routing;
contact-centre features.
This is why two businesses with the same number of employees can receive very different quotes.
A ten-user business that needs straightforward calling may pay around £100 to £200 per month . Another ten-user business requiring recorded calls, CRM integration, detailed reporting and international calling could pay £250 to £500 or more per month .
Typical monthly VoIP costs by business size
Number of users Basic system Standard system
£1
£8-£15
£15-£25
£25-£40+
£5
£40-£75
£75-£125
£125-£200+
£10
£80-£150
£150-£250
£250-£400+
£25
£200-£375
£375-£625
£625-£1,000+
£50
£400-£750
£750-£1,250
£1,250-£2,000+
100
£800-£1,500
£1,500-£2,500
£2,500-£4,000+
What is included in a business VoIP price? A standard hosted VoIP subscription will usually provide a core set of calling and administration tools.
Depending on the provider and package, this will usually include:
a UK geographic or non-geographic business number;
inbound and outbound calling;
voicemail;
voicemail-to-email;
call transfer;
call forwarding;
caller display;
mobile and desktop applications;
extension dialling;
online user administration;
call history;
business-hours routing;
basic hunt groups;
software updates.
Do not assume that every advertised price includes UK call minutes – some providers include a call allowance, while others charge separately for calls or offer optional bundles. International numbers, premium destinations and overseas calls are usually excluded unless stated otherwise.
When comparing prices, ask each provider to confirm:
whether UK landline and mobile calls are included;
whether there is a fair-use limit;
which features apply to every licence;
whether support is included;
whether prices increase during the contract;
whether handsets are purchased, rented or financed;
whether there are early termination charges.
What affects the cost of a VoIP phone system? 1. Number of users
Most hosted VoIP services charge for each user or extension – take a business with 20 employees, this does not necessarily require 20 full licences. Shared phones, meeting-room devices and occasional users may need different licence types.
Ask whether your provider offers:
basic licences for light users;
standard licences for everyday employees;
advanced licences for managers or customer-facing teams;
shared-area or common-device licences;
contact-centre licences for agents.
Matching licences to actual usage can materially reduce the total cost.
2. Included calls
A low monthly price may exclude calls, so check whether the package includes:
calls to UK landlines;
calls to UK mobiles;
international minutes;
calls to commonly used overseas destinations;
fair-use restrictions;
charges for diverted calls.
A business with high call volumes may be better served by an inclusive bundle and a company receiving far more calls than it makes may save money with a lower licence fee and metered outbound calls.
3. Features
Standard features such as voicemail and basic call forwarding are often included – and usually are things like:
call recording;
long-term recording storage;
speech analytics;
live wallboards;
advanced reporting;
supervisor monitoring;
CRM integration;
artificial-intelligence call summaries;
contact-centre queues;
workforce management;
compliant payment handling;
international numbers;
advanced disaster recovery.
4. Handsets and headsets
VoIP can work through:
physical desk phones;
cordless IP phones;
desktop applications;
mobile applications;
browser-based calling;
USB or wireless headsets.
Businesses that already provide laptops and headsets might not need physical phones but reception areas, warehouses, meeting rooms and customer-service desks are more likely to require dedicated equipment.
5. Setup and installation
Some providers offer remote setup at no additional cost while others charge for configuration, installation or project management.
Setup costs can cover:
account configuration;
call-flow design;
auto-attendant menus;
handset installation;
user creation;
CRM integration;
number porting;
testing;
employee training;
migration from an existing PBX.
A simple remote deployment may cost nothing beyond the monthly licence whereas a multi-site migration can cost hundreds or thousands of pounds.
6. Contract length
Longer contracts can reduce the opening monthly price, but they also make it more expensive to leave, so look for:
monthly rolling;
12 months;
24 months;
36 months;
60 months.
Do not compare a five-year offer directly with a flexible monthly plan without considering:
annual price rises;
early termination charges;
equipment finance;
minimum user commitments;
whether licences can be reduced;
what happens when an employee leaves.
7. Support
Basic online or office-hours support may be included, and businesses that depend heavily on telephone calls could require:
24-hour support;
faster response times;
service-level guarantees;
named account management;
managed configuration;
on-site engineering;
network monitoring;
failover arrangements.
Enhanced support can increase the monthly cost but may be worthwhile when missed calls translate directly into lost sales.
8. Broadband and network upgrades
VoIP calls travel over an internet connection and while your existing broadband may be sufficient, some businesses need:
faster business broadband;
a leased line;
additional upload capacity;
network switches;
business-grade Wi-Fi;
power-over-Ethernet equipment;
traffic prioritisation;
a backup connection.
A cheap phone subscription will not perform well over an unreliable network.
Hosted VoIP costs Hosted VoIP, also known as cloud VoIP or a hosted phone system, is normally the simplest option for small and medium-sized businesses.
The provider operates the central phone platform, while users connect through phones, applications or browsers.
Typical hosted VoIP cost
Basic: £8-£15 per user/monthStandard: £15-£25 per user/monthAdvanced: £25-£40+ per user/month
SIP trunking costs SIP trunking connects an existing compatible PBX to internet-based telephone services, so instead of purchasing one hosted licence for every employee, a business buys enough channels to handle its expected number of simultaneous external calls.
Typical SIP trunking cost
A SIP channel commonly costs approximately £3 to £10 per month , although calls, numbers, support and setup may be charged separately.
SIP trunking can be cost-effective for:
businesses with a compatible existing PBX;
companies with many extensions but fewer simultaneous calls;
organisations with internal telecoms expertise;
larger offices migrating gradually from legacy telephone infrastructure.
It will be less appropriate when the existing PBX is obsolete, expensive to maintain or unable to support the required integrations.
Contact-centre VoIP costs Contact-centre platforms cost more than ordinary business phone systems because they include tools for managing agents, queues, supervisors and customer interactions.
Typical contact-centre pricing
Entry-level: £35-£55 per agent/monthMid-range: £55-£85 per agent/monthAdvanced: £85-£150+ per agent/month
Hidden VoIP costs to check A provider’s headline price may not represent the complete cost, so before signing, check for:
VAT ;setup charges;
delivery;
installation;
number-porting fees;
call charges;
international call rates;
premium-number charges;
handset rental;
equipment finance;
support fees;
training;
call-recording storage;
CRM integration;
additional telephone numbers;
contract price increases;
minimum user commitments;
early termination charges;
charges for reducing licences;
broadband upgrades;
router or network equipment;
charges for exporting recordings or data;
end-of-contract equipment fees.
Ask for a written quote showing both the initial cost and the total contract cost .
Can VoIP reduce business phone costs?
VoIP can reduce costs, but the size of the saving depends on the current system and the replacement contract, and potential savings can often come from:
replacing expensive legacy lines;
reducing PBX maintenance;
combining multiple sites;
lowering internal call costs;
using mobile and desktop applications instead of desk phones;
avoiding separate conferencing services;
reducing office-move costs;
managing users through one online platform.
However, a feature-heavy VoIP system can cost more than a basic landline!
The objective should not be to choose the lowest licence price, it should be to obtain the right functionality at the lowest reasonable total cost.
Businesses can overpay when you:
purchase advanced licences for every employee;
accept unnecessary five-year contracts;
finance more handsets than they need;
add duplicate collaboration tools;
fail to negotiate for higher user volumes;
overlook annual price increases;
buy unlimited calls despite making very few outbound calls.
VoIP versus traditional business phone costs
Cost factor Traditional phone system Hosted VoIP
Main pricing basis
Lines, calls and PBX
On-site equipment
Often required
Usually limited
Maintenance
Business responsibility or support contract
Adding users
Can require engineering
Remote working
May require diversion or extra configuration
Usually included
Mobile application
Uncommon
Common
Multi-site management
Potentially complex
Upfront cost
Can be high
Often lower
Dependence on internet
Limited
Essential
Power resilience
Varies
How to choose a VoIP provider Do not select a provider based only on the cheapest displayed monthly price.
Start with your requirements
Record:
number of employees;
number of simultaneous calls;
required telephone numbers;
office and remote locations;
expected call volumes;
international destinations;
desk phone requirements;
essential integrations;
recording and reporting needs;
support expectations;
contract preference.
Compare like-for-like quotes
Every provider should quote for the same requirements, so ask for:
price per licence;
licence type;
included minutes;
handset costs;
setup fees;
number-porting costs;
support;
contract length;
scheduled price increases;
total cost over the full term.
Test the service
Where possible, arrange a demonstration or trial and test:
desktop application;
mobile application;
call transfer;
voicemail;
audio quality;
call routing;
administration portal;
CRM integration;
reporting;
support response.
Check resilience
Ask what happens when:
your broadband fails;
the provider experiences an outage;
the office loses power;
an employee cannot access the application;
a handset stops working;
calls need to be diverted urgently.
A resilient setup may include mobile applications, automatic diversion and a backup internet connection.
Questions to ask a VoIP provider Before agreeing to a contract, ask:
What is the complete monthly cost?
Which calls are included?
Are there fair-use limits?
What are the call rates outside the allowance?
How much does each handset cost?
Is the equipment owned or rented?
Are setup and number porting included?
How long will the migration take?
Can we keep our existing numbers?
Will you manage the number transfer?
Which features cost extra?
Can different employees have different licences?
Can we reduce the number of licences?
What support is included?
Is support available outside office hours?
What service levels apply?
Will prices rise during the contract?
What are the cancellation charges?
How is customer data protected?
What happens if our broadband connection fails?
Is cheap VoIP suitable for every business? A low-cost system can be perfectly adequate for a small business with simple requirements.
The cheapest option may not be suitable when telephone calls are business-critical or when you require:
guaranteed support;
complex call queues;
regulated recording;
multiple sites;
advanced integrations;
detailed analytics;
contact-centre functionality;
high international call volumes;
specialist resilience.
Is VoIP worth the cost? VoIP is worth considering if you want:
flexible remote working;
easier scaling;
centralised call management;
mobile and desktop calling;
improved reporting;
less on-site telephone equipment;
easier multi-site communication;
integration with business software.
Compare business VoIP costs VoIP prices vary according to the number of users, included calls, hardware, support, integrations and contract length.
A provider advertising an £8 licence may not be cheaper overall than a £15 package that includes calls, setup and the features your team needs.
Comparing quotes can help you understand:
the realistic monthly cost;
which features are included;
whether new equipment is required;
the total contract value;
which providers support your business size and working model.
Compare VoIP phone-system quotes from UK providers. It is free to compare, and there is no obligation to proceed.
FAQs
How much does VoIP cost per month in the UK?
Business VoIP usually costs approximately £8 to £30 per user per month, excluding VAT. Basic systems can cost less, while contact-centre, compliance and advanced unified-communications packages can cost significantly more.
How much would VoIP cost for ten users?
A ten-user business could pay approximately £80 to £300 per month for licences. Hardware, setup, call recording, CRM integration and call charges may increase the total.
Is VoIP cheaper than a landline?
VoIP can be cheaper than traditional telephone systems, particularly for businesses with multiple users, offices or remote workers. Savings are not guaranteed because advanced features, hardware and long contracts can increase the cost.
Does VoIP include calls?
Some packages include UK landline and mobile calls, while others charge per minute or sell call bundles separately. Check the included destinations and fair-use limits before comparing prices.
Do I need to buy VoIP phones?
Not always. Employees can often use a desktop application, mobile application or browser with a suitable headset. Desk phones may still be useful for receptionists, meeting rooms and permanent workstations.
Can I use VoIP with my existing broadband?
Possibly. Suitability depends on the connection’s speed, stability, upload capacity, latency and the number of simultaneous calls. A provider should assess the network before migration.
Can I keep my existing telephone number?
Existing UK business numbers can often be ported to a VoIP provider. Confirm portability before cancelling the current service.
How much does a VoIP handset cost?
A standard VoIP desk phone typically costs around £50 to £250. Premium touchscreen, conference and specialist devices can cost more.
Are there setup fees?
Some providers include remote setup, while others charge for configuration, installation, number porting or training. Setup can range from £0 for a simple deployment to hundreds or thousands of pounds for a complex multi-site system.
How long are VoIP contracts?
Common terms include monthly rolling, 12, 24, 36 and 60 months. Longer contracts may offer a lower initial price but can include annual increases and expensive termination charges.
What is the cheapest type of business VoIP?
A basic hosted VoIP licence or mobile-first virtual phone system is usually the cheapest option for a very small business. SIP trunking may be cheaper for a larger organisation that already owns a compatible PBX.
How much is Microsoft Teams Phone?
Microsoft currently advertises Teams Phone Standard from £7.70 per user per month, paid annually and excluding VAT. A complete external calling setup may also require a calling plan, Operator Connect or Direct Routing.
Can VoIP work during a power cut?
VoIP equipment normally requires electricity and an active internet connection. Businesses should consider mobile applications, call diversion, backup power and a secondary internet connection where telephone availability is critical.
Is VoIP secure?
Business VoIP can be secure when it is correctly configured and supported. Important protections include strong passwords, multi-factor authentication, encrypted communications, restricted administration access, software updates and controls against call fraud.
What happens to VoIP when the internet goes down?
Office phones may stop working through the affected connection. Depending on the setup, incoming calls may be redirected to mobile phones, another office or a backup connection.
When is the UK landline switch-off?
BT plans to retire the traditional public switched telephone network by January 2027, with other providers following broadly similar programmes. Businesses should check legacy telephone lines and connected equipment before migration.
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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.
