VoIP Phone Systems for Small Businesses 2026 | Costs & Best Setup Quick Answer
For most UK small businesses, hosted VoIP is the simplest way to replace traditional phone lines because i t gives you business numbers, call routing, voicemail and mobile/desktop calling without requiring an old-style PBX at your premises.
Business size VoIP setup to compare first Typical cost guide
1 user
Simple cloud VoIP or business number
Around £8-£15/month
2-5 users
Hosted VoIP
Around £10-£20/user/month
6-20 users
Hosted VoIP / Cloud PBX
Around £12-£25/user/month
Customer-facing SME
Hosted VoIP with queues and routing
Usually £15-£30+ per user/month
Microsoft 365 business
Hosted VoIP vs Teams Phone
Depends on licensing and calling setup
The right setup depends more on how your business handles calls than simply how many employees you have.
Free quotes • No obligation • For UK businesses comparing cloud phone systems and hosted VoIP
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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: September 2026
Key Takeaways
Hosted VoIP is usually the simplest option for a small business replacing landlines.
Sole traders may only need a professional business number and mobile/desktop app.
Teams of 2-5 users usually benefit from shared numbers, voicemail and basic call routing.
Growing SMEs may need auto-attendants, hunt groups, reporting and selected CRM integrations.
Desk phones are optional for many employees.
Microsoft Teams Phone is worth comparing if Teams is already central to your business.
Small businesses normally do not need full contact-centre software unless calls are central to sales or support.
Compare the total monthly cost rather than only the advertised licence price.
What VoIP Setup Does Your Small Business Need?
Your business
Best starting setup
What you probably need
Sole trader
Simple cloud VoIP
Business number, mobile app and voicemail
2–5 employee office
Hosted VoIP
Shared number, call forwarding, voicemail and hunt group
6–20 employee SME
Hosted VoIP / Cloud PBX
Routing, auto-attendant, reporting and admin portal
Shop, salon or clinic
Hosted VoIP
Opening-hours routing, voicemail and optional desk phone
Professional-services firm
Hosted VoIP or Teams Phone
Professional numbers, mobile apps and hybrid working
Small sales/support team
Advanced hosted VoIP
Queues, recording and CRM integration
VoIP for a Sole Trader A one-person business usually does not need an elaborate office telephone system and you might only need:
a separate business telephone number
a mobile and desktop app
voicemail
call forwarding
opening-hours rules
A dedicated desk phone is optional, but ff you mainly want a professional number without publishing your personal mobile, a simple cloud VoIP service could really be enough.
VoIP for 2-5 Employees This is where hosted VoIP becomes particularly useful, as a small team can share one main business number while employees have their own extensions, so useful features include:
hunt groups
call forwarding
voicemail-to-email
desktop and mobile apps
opening-hours routing
optional desk phones
For many small businesses, this will be the best balance between professional call handling and low complexity.
VoIP for 6-20 Employees As a business grows, administration and routing become more important, so compare systems offering:
auto-attendants
department call groups
user administration
basic reporting
selected call recording
CRM integration
mobile and desktop apps
onboarding support
You still do not necessarily need a full contact-centre platform.
What Features Does a Small Business Actually Need?
Feature How important is it?
Business number
Essential for most businesses
Mobile app
Very useful
Desktop app
Useful for office/hybrid staff
Voicemail-to-email Very useful
Call forwarding
Very useful
Hunt groups
Useful for teams
Opening-hours routing
Useful for customer-facing businesses
Auto-attendant
Useful once you have departments
Call recording
Role dependent
CRM integration
Useful for sales/service teams
Advanced contact-centre analytics
Usually unnecessary for a standard SME
How Much Does Small Business VoIP Cost?
Setup Typical cost guide
Simple VoIP/business number
£8-£15/month
Standard hosted VoIP
£10-£25/user/month
Advanced hosted VoIP
£20-£40+ per user/month
Desk phone
Usually an additional hardware cost
Contact-centre functionality
Often £30-£100+ per agent/month
Costs can also include:
number porting
desk phones
headsets
call recording
international calls
CRM integrations
setup
support
See our VoIP costs guide for a more detailed breakdown.
Compare Small Business VoIP Costs
Hosted VoIP vs Microsoft Teams Phone for a Small Business
Hosted VoIP Microsoft Teams Phone
Best for
Most small businesses
Businesses already using Teams heavily
Setup
Usually provider-led
Microsoft/provider configuration
Business calling
Core purpose
Added to Teams
Mobile/desktop apps
Usually included
Teams app
Desk phones
Optional
Optional compatible devices
Support
Usually telecom-provider led
Can involve Microsoft partner/IT support
If your business already uses Microsoft 365 every day, see our Microsoft Teams Phone guide .
Do Small Businesses Need Desk Phones? No. Many employees can use:
a laptop
a headset
a desktop VoIP app
a mobile VoIP app
A physical phone still makes sense for reception desks, shops, clinics and employees who spend much of the day handling calls.
Do Small Businesses Need a Contact Centre? Usually not! A standard hosted VoIP system is normally sufficient if you only need:
shared numbers
voicemail
basic queues
call routing
mobile apps
You should consider a contact-centre platform if you have a dedicated sales or support operation requiring:
advanced queues
agent monitoring
CRM workflows
real-time reporting
call coaching
large call volumes
See our VoIP for call centres guide rather than over-specifying a standard small-business system.
What About Remote or Hybrid Employees? Hosted VoIP works well for hybrid businesses because employees can use business numbers through mobile and desktop apps.
If remote working is a major part of your requirement, see our dedicated VoIP for remote teams guide.
Which Providers Should Small Businesses Compare? Small businesses can compare providers such as bOnline, Vonage, BT, RingCentral and managed UK hosted-VoIP suppliers.
However, this page is about choosing the right setup , rather than ranking individual providers.
For detailed provider comparisons, see our best business VoIP providers UK guide.
What Should You Ask a VoIP Provider?
What is the total monthly cost?
Which UK calls are included?
Can we keep our existing number?
Are mobile and desktop apps included?
Do we need desk phones?
What support is included?
How long is the contract?
Will prices rise during the term?
What does number porting cost?
Can we add or remove users easily?
Is VoIP Worth It for a Small Business? For most small businesses that rely on phone calls, VoIP is a practical replacement for traditional landlines.
It is particularly useful if you:
want a professional business number
have more than one person answering calls
want employees to answer from mobiles or laptops
need voicemail and forwarding
are replacing traditional phone lines
want easier scaling as the business grows
The key is not to buy more system than you need.
Our Verdict Most UK small businesses should start by comparing hosted VoIP.
1 user: simple cloud VoIP/business number2-5 users: hosted VoIP with shared routing6-20 users: Cloud PBX with administration and reportingMicrosoft-heavy SME: compare Teams Phone against hosted VoIPSales/support operation: consider a contact-centre platform
If you want to understand the wider system choices, use our business VoIP phone systems p age.
If you already know you need VoIP and want to compare suppliers, see our business VoIP provider comparison .
Compare Small Business VoIP Quotes
Frequently Asked Questions How much does VoIP cost for a small business?
Standard hosted VoIP commonly costs around £10-£25 per user/month. Basic single-user systems may cost less, while advanced features can increase the price.
What is the best VoIP setup for a small business?
Hosted VoIP is usually the best starting point for a small team because it provides business numbers, voicemail, call routing and mobile/desktop apps without an on-site PBX.
What VoIP does a two-person business need?
A two-person business will usually only need a shared business number, separate extensions, voicemail, call forwarding and mobile or desktop apps.
What VoIP does a 10-person business need?
A 10-person business may benefit from hosted VoIP with hunt groups, auto-attendant routing, user administration, reporting and selected integrations.
Do small businesses need VoIP desk phones?
No. Many staff can use apps and headsets. Desk phones are useful where employees regularly handle calls from a fixed location.
Can a small business keep its existing phone number?
Usually, yes. Existing business numbers can normally be ported to the new service, but the transfer should be confirmed before cancelling the old line.
Is Microsoft Teams Phone good for a small business?
It can be where the business already uses Microsoft 365 and Teams heavily. Otherwise, standard hosted VoIP may be simpler.
Does a small business need a contact-centre phone system?
Usually not. Contact-centre platforms are more appropriate for businesses with dedicated sales or support teams and higher call volumes.
Related Small Business VoIP Guides 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.
