Hosted VoIP for Business UK 2026: Complete Guide to Costs, Features & Providers

Last updated: March 2026

The way UK businesses make and receive phone calls is changing permanently. With the PSTN (Public Switched Telephone Network) switch-off completing in January 2027, every traditional landline in the country will stop working. If your business still relies on a conventional phone line, you need to move to VoIP, and the clock is ticking.

But this is not a story of forced migration. Hosted VoIP is genuinely better than the system it replaces. It is cheaper, more flexible, packed with features that traditional phone lines could never offer, and it works wherever you have an internet connection. Businesses that have already switched are not looking back.

This guide covers everything you need to know about hosted VoIP for UK businesses in 2026: what it costs, what features matter, how the major providers compare, and how to switch without disrupting your business. As an OFCOM-regulated comparison service with a 4.3/5 Trustpilot rating, we have helped thousands of UK businesses navigate this transition since 2008.

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What Is Hosted VoIP?

Hosted VoIP (Voice over Internet Protocol) is a phone system that runs over the internet instead of traditional copper phone lines. Instead of a physical phone exchange sitting in your office, your entire phone system is hosted in the cloud by your provider. You simply plug in IP phones or use an app on your computer or mobile, and you are ready to make and receive calls.

The "hosted" part means you do not need to buy, maintain, or house any telephone exchange hardware. Your provider runs everything from their data centres, handles all the maintenance and updates, and you pay a predictable monthly fee per user.

How Hosted VoIP Differs from Traditional Phones

With a traditional phone system, your calls travel as electrical signals over copper wires maintained by Openreach. Your phone number is tied to a physical line connected to your premises. If you want additional lines, an engineer has to install them. If you move premises, you might lose your number.

With hosted VoIP, your calls travel as data packets over your internet connection, the same broadband that handles your email and web browsing. Your phone number is not tied to a physical location, so you can take it anywhere. Adding or removing users takes minutes, not weeks. And features that would cost thousands on a traditional system (auto-attendant, call recording, and call queuing) are included as standard.

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Hosted VoIP Costs Breakdown (2026 Prices)

One of the biggest advantages of hosted VoIP is cost predictability. Instead of complex call charges, line rental fees, and maintenance contracts, you pay a simple per-user monthly fee that includes almost everything.

Per-User Monthly Costs

What Affects the Price

Number of users: Volume discounts kick in at different thresholds depending on the provider. Most offer meaningful discounts from 5 users upward, with the best per-user pricing at 20+ users.

Features required: Basic plans cover standard calling needs. Premium plans add call recording, advanced analytics, CRM integration, and contact centre features. Most small businesses find that a standard tier plan covers everything they need.

Contract length: Month-to-month contracts cost 10-20% more than annual commitments. 24-month contracts offer the lowest per-user rates but reduce your flexibility.

Hardware: If you need physical desk phones, these are typically £50-150 per handset (purchased) or £3-5/mo per handset (leased). Many businesses skip desk phones entirely and use softphone apps on computers and mobiles.

Total Cost Comparison: VoIP vs Traditional Phone System

The savings are dramatic, particularly in year one when traditional systems require a large upfront hardware investment. Over a three-year period, a typical 10-user business saves £8,000-15,000 by switching to hosted VoIP.

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Key Features to Look For

Not all VoIP systems are created equal. Here are the features that actually matter for UK businesses, ranked by importance.

Essential Features (Every Provider Should Offer These)

Unlimited UK landline and mobile calls: Most hosted VoIP plans include unlimited calls to UK landlines and mobiles. If a provider charges per-minute for UK calls, look elsewhere.

Voicemail to email: Voicemails are transcribed or sent as audio files to your email. You never miss a message, even when you are away from your desk.

Auto-attendant (IVR): "Press 1 for sales, press 2 for support." A professional greeting system that routes callers to the right person or department without a receptionist.

Call forwarding and divert: Route calls to mobile phones, other extensions, or external numbers based on time of day, availability, or caller input.

Mobile app: Make and receive calls on your business number from your mobile phone. Essential for hybrid and remote workers.

Number porting: Bring your existing business phone numbers with you. Any reputable provider handles this free of charge.

Important Features (Worth Paying Extra For)

Call recording: Automatically record calls for training, compliance, or dispute resolution. Essential for regulated industries and increasingly expected by HMRC for VAT-registered businesses.

CRM integration: Connect your phone system to Salesforce, HubSpot, or other CRM platforms so that customer records pop up automatically when they call.

Call analytics and reporting: Detailed data on call volumes, wait times, missed calls, and agent performance. Invaluable for businesses with sales or support teams.

Microsoft Teams integration: If your team uses Teams, integrating your phone system means calls come through the same interface. See the dedicated section below for details.

Call queuing: When all lines are busy, callers are placed in a queue with hold music and position announcements rather than receiving a busy signal.

Nice to Have Features

Video conferencing: Some VoIP providers include video calling, though most businesses already use Teams or Zoom for this.

Fax to email: Receive incoming faxes as email attachments. Relevant for legal, medical, and property businesses that still receive faxes.

Hot desking: Users can log into any desk phone and it becomes their extension. Useful for businesses with shared desks or multiple office locations.

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VoIP vs Virtual Landline vs Traditional Phone: Which Is Right for You?

With the PSTN switch-off approaching, you have three main options for your business phone system. Here is how they compare.

Comparison Table

Virtual Landlines Explained

A virtual landline gives you a traditional-looking phone number (01, 02, or 03 prefix) that routes calls to your mobile phone. There is no physical line. Calls are forwarded over the mobile network. This is an excellent low-cost option for sole traders and micro businesses who want a professional phone number without the complexity of a full VoIP system.

Virtual landlines are simple, affordable, and work anywhere you have mobile signal. However, they lack the advanced features of full hosted VoIP: no extensions, no call queuing, no CRM integration. For businesses with more than two or three people, a hosted VoIP system is usually the better choice.

When to Choose Each Option

Choose a virtual landline if: You are a sole trader or have a very small team (1-3 people), you want a professional number without complexity, and you do not need advanced phone system features. See our virtual landline options.

Choose hosted VoIP if: You have 3 or more people, you need features like auto-attendant, call recording, or CRM integration, or you want a scalable system that grows with your business. Explore our business VoIP comparison.

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Best Hosted VoIP Providers Compared (UK 2026)

The UK hosted VoIP market has consolidated significantly in recent years. Here are the providers that consistently deliver for UK businesses.

Provider Comparison Table

BT Cloud Voice / EE Integration

BT Cloud Voice is the hosted VoIP solution from BT Group, which also owns EE. The key advantage is deep integration with EE business mobile plans. Businesses can have their desk phone and EE mobile ring simultaneously, transfer calls seamlessly between devices, and manage everything through a single BT account. For businesses already on EE mobile, this integration makes BT Cloud Voice the natural VoIP choice.

Vodafone One Net

Vodafone One Net Express is designed specifically for small and medium businesses. It integrates your Vodafone business mobile with your desk phone, giving each user a single number that works across both devices. The setup is straightforward, and the pricing is competitive for businesses with 5-50 users.

Microsoft Teams Phone

If your business already uses Microsoft 365 and Teams, adding Teams Phone is often the most cost-effective and least disruptive VoIP option. Teams Phone adds the ability to make and receive external calls (to landlines and mobiles) directly through the Teams interface. Your existing business number is ported in, and your team makes calls the same way they make Teams calls, with no new software to learn.

Teams Phone is available as an add-on to Microsoft 365 Business or Enterprise plans, typically costing £6-10 per user per month on top of your existing Microsoft subscription. You will also need a calling plan or direct routing setup to connect to the public telephone network.

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The PSTN Switch-Off: Why You Need to Act Now

The UK's Public Switched Telephone Network, the copper-based system that has carried phone calls since the Victorian era, is being permanently switched off. Here is the timeline:

• September 2023: Openreach stopped selling new traditional phone lines (stop-sell)
• Throughout 2024-2026: Progressive migration of existing customers to digital alternatives
• January 2027: Final switch-off. All remaining traditional phone lines cease to function

If your business still has a traditional phone line, it will stop working by January 2027. This is not optional, not negotiable, and not being delayed further. Openreach has already migrated millions of lines and is actively contacting remaining customers.

What This Means for Your Business

Any service that runs over a traditional phone line needs to be migrated:

• Business phone lines: Must move to VoIP or virtual landline
• ISDN lines: Must move to SIP trunking or hosted VoIP
• Fax machines: Must switch to fax-to-email or online fax services
• Alarm systems: Must be upgraded to broadband or mobile-connected
• Card payment machines (PDQ): Must switch to broadband or mobile connectivity

The single most important action is to move your business phone system to hosted VoIP. Do not wait until late 2026 when every business in the country will be trying to migrate simultaneously. Providers will be overwhelmed, and you risk being without a phone system when your old line is disconnected.

For a complete guide to the PSTN switch-off, read our detailed article on what businesses need to do before 2027.

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How to Switch to Hosted VoIP: Step-by-Step

Switching to hosted VoIP is straightforward, but planning the transition properly avoids disruption. Here is the process.

Step 1: Assess Your Current Setup

Document what you have now:

• How many phone lines and extensions?
• What is your monthly spend on line rental and calls?
• What features do you use (voicemail, hunt groups, auto-attendant)?
• Do you have any services dependent on your phone line (alarms, fax, card machines)?

Step 2: Check Your Broadband

Hosted VoIP requires a reliable broadband connection. Each simultaneous call uses approximately 100Kbps of bandwidth. For a typical 10-user office where 5 people might be on calls simultaneously, you need at least 500Kbps of dedicated bandwidth, easily handled by any modern broadband connection.

However, reliability matters more than speed. If your broadband regularly drops out, your phones will drop out too. Consider a backup broadband connection or a 4G/5G failover router for business-critical phone systems.

Step 3: Choose Your Provider

Use our free comparison tool to compare VoIP providers based on your requirements. Consider:

• Per-user cost for the features you need
• Contract length and flexibility
• Integration with your existing tools (Teams, CRM)
• Support quality and availability
• Mobile integration if you use business mobiles

Step 4: Port Your Numbers

Your existing business phone numbers can be transferred to your new VoIP provider. The porting process takes 5-10 business days for geographic numbers (01/02). During the port, calls are redirected seamlessly. There is no period where your number is unreachable.

Step 5: Set Up and Test

Most hosted VoIP systems can be set up remotely. Your provider will:

• Configure your auto-attendant and call routing
• Set up user accounts and extensions
• Ship IP phones if required (or set up softphone apps)
• Test everything before going live

Step 6: Go Live

The switch typically happens on a scheduled date. Your old phone line is disconnected, your VoIP system takes over, and your business number now rings through your new system. Most businesses report that the actual switchover is anticlimactic. Everything just works.

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Common Mistakes to Avoid

Choosing the cheapest option without checking features: A £5/user plan that lacks auto-attendant or call recording may cost you more in lost professionalism than the £10/user plan that includes them.

Ignoring broadband quality: VoIP only works as well as your broadband. If your internet is unreliable, invest in better broadband before switching your phones. See our guide to business phone and broadband bundles.

Forgetting about non-phone services on your line: Alarm systems, card machines, and fax machines connected to your phone line need separate solutions. Identify these before disconnecting anything.

Leaving it too late: With the January 2027 PSTN switch-off deadline, businesses that wait until Q4 2026 will face longer lead times and limited provider availability. Start the process now.

Not training your team: VoIP works differently from traditional phones. Spend time showing your team how to use the new system, especially mobile apps and features like call transfer and conference calling.

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Frequently Asked Questions

How much does hosted VoIP cost per month for a small business?

For a typical small business, hosted VoIP costs between £5 and £25 per user per month, depending on the features you need. A basic plan with unlimited UK calls and voicemail starts from around £5-8 per user. A standard plan with call recording, auto-attendant, and a mobile app costs £10-15 per user. Most 5-person businesses pay £50-75 per month total for a capable VoIP system.

Is VoIP call quality as good as a traditional landline?

On a reliable broadband connection, yes. Modern VoIP systems use HD voice codecs that deliver call quality equal to or better than traditional landlines. Call quality issues are almost always caused by poor or congested broadband rather than the VoIP technology itself. If your broadband speed exceeds 10Mbps and is stable, you should expect excellent call quality.

What happens to my phone system if the internet goes down?

Most hosted VoIP providers include automatic failover options. If your broadband drops, calls can be automatically redirected to mobile phones, a secondary office, or voicemail. Some providers offer 4G/5G backup routers that maintain your VoIP connection during broadband outages. For mission-critical businesses, a backup broadband connection is recommended.

Can I keep my existing phone number when switching to VoIP?

Yes. Number porting is a standard, regulated process in the UK. All geographic numbers (01, 02, 03) and non-geographic numbers (0800, 0845, etc.) can be ported to a VoIP provider. The process typically takes 5-10 business days and there should be no period of downtime for your number.

Do I need special phones for VoIP?

No. While dedicated IP desk phones offer the best experience, you can use VoIP through a softphone app on your computer, a mobile app on your smartphone, or even a regular analogue phone with a small adapter. Many businesses are moving away from desk phones entirely, using laptop and mobile apps instead.

How does Microsoft Teams Phone compare to standalone VoIP providers?

Teams Phone is cost-effective if you already pay for Microsoft 365, as the add-on cost (£6-10/user/mo) is lower than most standalone VoIP providers. The main advantage is that your team uses one interface for everything: chat, video, and phone calls. The main limitation is that Teams Phone has fewer advanced telephony features (like sophisticated call queuing and IVR) compared to dedicated VoIP platforms. For businesses with simple phone requirements, Teams Phone is excellent. For those needing contact centre features, a dedicated VoIP provider may be better.

What broadband speed do I need for VoIP?

Each simultaneous VoIP call requires approximately 100Kbps of bandwidth. For a 10-person office where half might be on calls at once, you need about 500Kbps, a tiny fraction of even basic broadband speeds. The more important factor is broadband stability and latency. A consistent 10Mbps connection with low latency will deliver better VoIP quality than a variable 100Mbps connection that frequently drops packets.

Is hosted VoIP secure?

Reputable hosted VoIP providers encrypt calls and data in transit using TLS and SRTP encryption. Your calls are as secure as, and arguably more secure than, traditional landline calls, which have no encryption at all. For businesses in regulated industries, look for providers that offer compliance certifications (ISO 27001, SOC 2) and call recording with secure storage.

What is the difference between hosted VoIP and SIP trunking?

Hosted VoIP is a complete phone system run by your provider in the cloud. They manage everything. SIP trunking connects an existing on-premises phone system (PBX) to the internet for calls. If you already own a compatible PBX and want to keep it, SIP trunking lets you use it without traditional phone lines. If you want a fully managed system with no on-site hardware, hosted VoIP is the way to go.

When is the deadline to switch from my traditional phone line?

The PSTN switch-off is scheduled for completion by January 2027. Openreach stopped selling new traditional phone lines in September 2023 and is actively migrating existing customers. While the exact date your specific line will be switched off depends on your exchange, all lines will be migrated by the January 2027 deadline. Do not wait until the last minute. Start the process now to ensure a smooth transition.

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Get Your Free VoIP Comparison Today

The move to VoIP is inevitable. Every UK business will need to make it before January 2027. The question is not whether to switch, but which provider gives your business the best combination of features, reliability, and value.

Get a free, impartial comparison in under two minutes. As an OFCOM-regulated comparison service with a 4.3/5 Trustpilot rating, we compare every major UK VoIP provider and find the best solution for your specific business needs.

Get Your Free Business VoIP Quote Now

No obligation. No cost. Just the clearest view of which VoIP system is right for your business.

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