Cheap Business Phone System UK: Quality VoIP from £6/User

Last updated: April 2026

Let us be honest about something. When most people search for a "cheap business phone system", they are not looking for the absolute bottom of the barrel. They want a proper phone system that does not cost a fortune. There is a big difference between cheap and rubbish, and you should not have to accept rubbish just because your budget is tight.

The good news is that business phone systems have never been more affordable. VoIP has completely flattened the cost structure. Ten years ago, a phone system for a 5 person office meant spending thousands upfront on a PBX box, paying an engineer to install it, then paying line rental and call charges on top. Today, you can have a professional business phone system running on your existing broadband for as little as £6+VAT per user per month, with no hardware to buy and no engineer visit needed.

We are Compare The Networks, an OFCOM regulated comparison service based in Shrewsbury. Since 2008, we have helped over 2,000 UK businesses find phone systems that fit their budget. We have a 4.3/5 Trustpilot rating from over 1,000 reviews, and a good chunk of those reviews come from small businesses that were surprised at how much phone system they could get for so little money.

This guide breaks down exactly what a cheap business phone system costs in the UK right now, what the hidden costs are, and how to get genuine value without overspending.

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What Does a Business Phone System Actually Cost in 2026?

The short answer: from £6+VAT per user per month for basic plans, up to £25+VAT per user per month for premium plans with all the bells and whistles. Most small businesses end up somewhere in the £10 to £15 range per user, which gives you everything you actually need.

Here is a realistic monthly cost breakdown for different business sizes.

Monthly Cost by Business Size

Compare that to a traditional phone system where line rental alone is £15 to £20 per line per month, before you have made a single call. A 5 person office on traditional lines would pay £75 to £100 per month in line rental, plus call charges, plus maintenance on the PBX hardware that cost you several thousand pounds to buy.

VoIP is not just cheaper. It is dramatically cheaper, while giving you more features.

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The Cheapest Way to Set Up: Softphone Only

If you want the absolute lowest cost business phone system, go softphone only. This means no desk phones at all. Your team uses an app on their computer, laptop, or mobile phone to make and receive calls. The app looks and works like a phone, with a dial pad, contacts, call history, and all the usual features.

What You Get with a Softphone Only Setup

• A proper business phone number (geographic 01/02 or non geographic 03/0800)
• Inbound and outbound calling
• Voicemail
• Call transfer and hold
• Mobile app for calls on the go
• Typically unlimited UK landline and mobile calls included

What It Costs

Just the per user VoIP subscription. No hardware costs at all. For a sole trader, that is £6+VAT per month. For a 5 person team on basic plans, £30+VAT per month total.

Who This Works For

Softphone only works well for businesses where staff spend most of their time at a computer anyway. Web designers, accountants, consultants, marketing agencies. If you are already in front of a screen all day, a softphone app is perfectly natural. It also works brilliantly for remote and hybrid teams because the app works anywhere with internet.

Who Should Think Twice

Businesses where staff are away from computers frequently, like workshops, retail premises, or warehouses. In these environments, a desk phone or cordless handset makes more sense because you need something that just sits there ready to answer.

Want to explore your options? Get a free VoIP quote and we will show you the cheapest setup that actually works for your business.

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Adding Desk Phones: What It Adds to the Cost

Desk phones are not essential with VoIP, but many businesses prefer having physical handsets. There is something reassuring about a proper phone on the desk, especially in reception areas or for staff who are on calls all day.

Desk Phone Costs

Buy or Lease?

Buying makes sense if you plan to keep the phones for 3+ years. A £70 Yealink T33G will last 5 to 7 years easily, making the effective monthly cost about £1. You own the phone, and if you change VoIP provider the phone probably works with the new one (most IP phones support standard SIP).

Leasing makes sense if you want to spread the cost, keep your upfront investment at zero, or want the latest hardware with easy upgrades. The monthly cost is higher over time, but you avoid spending hundreds or thousands on day one.

For a budget conscious 5 person office, we would recommend buying 5 mid range Yealink T33G phones at about £70 each (£350 total) and running them on a basic VoIP plan. Your total monthly cost would be around £30+VAT for the VoIP service, with the phones paid off in the first month.

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Budget Friendly VoIP Providers Compared

Here is a comparison of what you actually get from the main UK VoIP providers at their entry level price points.

Important note: These are starting prices. The actual price you pay depends on the number of users, contract length, and any promotional offers running at the time. Prices change frequently, which is exactly why using a comparison service like ours saves you money. We get quotes from all the major providers and find the best deal for your specific requirements.

Get your free comparison now and see how much you could save.

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Hidden Costs to Watch For

This is where "cheap" can become expensive if you are not careful. Here are the hidden costs that catch businesses out.

Number Porting Fees

Moving your existing phone number to a new VoIP provider should be free or very cheap (£5 to £10 per number). Some providers charge £25 to £50 per number, which adds up quickly if you have multiple numbers. Always ask about porting fees before signing up.

Call Charges Beyond Your Bundle

"Unlimited UK calls" usually means unlimited calls to UK landlines and UK mobiles. International calls, premium rate numbers, and calls to non geographic numbers (0845, 0870) are typically charged separately. Check the per minute rates for the types of calls your business actually makes.

Number Rental

Your VoIP plan includes one phone number per user. If you want additional numbers (a separate sales line, a freephone 0800 number, local numbers for different areas), these are usually £1 to £5 per month each. Freephone numbers also have per minute inbound costs of 3 to 7p per minute.

Early Termination Fees

If you sign a 12 or 24 month contract and want to leave early, you will typically owe the remaining months on your contract. This is standard practice but worth knowing about. Month to month contracts avoid this risk but cost 10 to 20% more per month.

Hardware Delivery and Setup

If you buy or lease desk phones, check whether delivery and any setup fees are included. Most providers ship phones pre configured and ready to plug in, but some charge a setup fee of £10 to £25 per handset.

Add On Features

Some features you might assume are included may be add ons at the cheaper price tiers:

• Call recording: Often requires standard tier (£10+/user) rather than basic
• Auto attendant: Usually included but sometimes a paid add on
• Call queuing: Typically a premium feature
• CRM integration: Premium tier or paid add on
• Video conferencing: May require a separate plan or add on

The trick is to list the features you genuinely need before comparing prices. A £6 plan that does not include auto attendant is not cheaper than a £10 plan that does, if you need auto attendant.

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What "Cheap" Should Actually Mean

When we talk about a cheap business phone system, we do not mean cutting corners. We mean getting genuine value, paying for what you need and not paying for what you do not.

Here is what a genuinely good budget phone system should include:

Must Have Features (Even on a Budget)

• A proper business number: Not a mobile number. A geographic (01/02) or national (03) number that looks professional
• Voicemail: With email notification so you never miss a message
• Call transfer: So you can pass calls between team members
• Hold music: Professional on hold experience instead of silence
• Mobile app: So you can make and receive business calls from your mobile without giving out your personal number
• Unlimited UK calls: Landline and mobile calls included, no watching the clock

Worth Paying a Bit More For

• Auto attendant: "Press 1 for sales, 2 for support." Makes a 3 person business sound like a 30 person business. Most standard tier plans include this
• Call recording: Invaluable for training, disputes, and quality. See our detailed guide to VoIP call recording for small businesses
• Hunt groups and ring groups: Multiple phones ringing when a call comes in, so customers always reach someone

Probably Do Not Need (Save the Money)

• Advanced analytics and reporting: Nice to have but not essential for most small businesses
• CRM integration: Only worth it if you actually use a CRM system
• Contact centre features: Wallboards, supervisor whisper, queue callbacks. These are for bigger teams
• Video conferencing: You probably already have Zoom or Teams for this

For a complete overview of what VoIP can do for your business, read our hosted VoIP guide for UK businesses.

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Real Cost Examples: 3 Common Setups

Setup 1: The Absolute Minimum (Sole Trader)

• 1 user, softphone only, basic plan
• Monthly cost: £6+VAT (£7.20 inc VAT)
• Annual cost: £72+VAT (£86.40 inc VAT)
• What you get: Business phone number, unlimited UK calls, voicemail, mobile app

This is perfect for freelancers, consultants, and sole traders who want a business number separate from their personal mobile.

Setup 2: Small Office (5 Users, Budget Focused)

• 5 users, standard plan, 3 desk phones + 2 softphone only
• VoIP: 5 users at £10+VAT = £50+VAT/month
• Phones: 3x Yealink T33G purchased at £70 each = £210 one off
• Monthly cost: £50+VAT (£60 inc VAT)
• Annual cost: £600+VAT + £210 phones = £810+VAT first year
• What you get: Auto attendant, call recording, mobile apps, unlimited UK calls, 3 desk phones

This is the sweet spot for most small offices. Professional features, proper desk phones where needed, and a total cost that would barely cover the line rental of a traditional phone system.

Setup 3: Growing Team (10 Users, Feature Rich)

• 10 users, standard plan, 8 desk phones + 2 softphone only
• VoIP: 10 users at £12+VAT = £120+VAT/month (volume discount)
• Phones: 8x Yealink T33G purchased at £65 each = £520 one off
• Monthly cost: £120+VAT (£144 inc VAT)
• Annual cost: £1,440+VAT + £520 phones = £1,960+VAT first year
• What you get: Everything in Setup 2 plus call queuing, advanced routing, and typically better per user pricing

Compare that to a traditional PBX system for 10 users: £3,000 to £8,000 for the hardware, £150 to £200 per month in line rental alone, plus call charges and maintenance. VoIP saves you thousands.

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When to Spend More

Sometimes the cheapest option is not the right option. Here are situations where spending more makes sense.

You Need Reliability Above All Else

If your business depends entirely on phone calls (a medical practice, emergency service, helpline), invest in a premium tier plan with guaranteed uptime SLAs, redundant connections, and 24/7 support. The extra £5 to £10 per user per month is insurance against downtime that could cost you far more.

Your Broadband Is Unreliable

VoIP only works as well as your broadband. If your current broadband drops out regularly, fix that first. We offer Sky SOGEA broadband at £35+VAT per month with 80/20 speeds, which gives you a solid foundation for VoIP. Poor broadband plus cheap VoIP equals a terrible experience. Good broadband plus cheap VoIP equals a great one. Read more about choosing the right broadband in our business broadband guide.

You Are in a Regulated Industry

FCA regulated businesses need compliance grade call recording. Healthcare organisations may need specific security certifications. These features cost more but they are not optional for your industry.

You Have a Complex Call Routing Requirement

If you need calls routed between multiple sites, departments with different opening hours, or overflow to an answering service, you will probably need a standard or premium plan. Trying to shoehorn complex routing into a basic plan leads to frustration.

If you are having issues with your current VoIP setup, our guide to VoIP problems and solutions covers the most common issues and how to fix them.

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Free Trials: Try Before You Buy

Most VoIP providers offer free trials, and you should absolutely take advantage of them. A trial lets you test call quality on your broadband, try out the mobile app, see how the admin portal works, and generally make sure the system suits your business before committing.

What to Look For During a Trial

• Call quality: Make calls at your busiest time. Does the quality hold up when your broadband is under load?
• Mobile app: Is it reliable? Does it drain your battery? Can you receive calls consistently?
• Admin portal: Is it easy to add users, change settings, and manage your phone system?
• Support: Try contacting support during the trial. How long do they take to respond? Are they helpful?

Typical Trial Periods

Most providers offer 14 to 30 day free trials. Some extend this if you need more time to evaluate. Always ask about the trial terms: some trials auto convert to a paid contract, so make sure you know the cancellation process.

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Frequently Asked Questions

What is the cheapest business phone system available in the UK?

The cheapest option is a VoIP softphone plan starting from £6+VAT per user per month. This gives you a proper business phone number, unlimited UK calls, voicemail, and a mobile app, with no hardware to buy. For a sole trader, that is the total monthly cost. For a 5 person team, basic plans start from £30+VAT per month total.

Do I need desk phones or can I just use my mobile?

You do not need desk phones. VoIP softphone apps on your computer or mobile give you all the same functionality. Many businesses operate entirely on softphones with no desk phones at all. However, some staff (particularly receptionists and people who spend most of their day on calls) prefer a physical handset. Entry level desk phones start from about £40 to £60 if you decide you want them.

Are there any truly free business phone systems?

There are free VoIP apps like Google Voice, but these are not available as business products in the UK. Free options lack features that make a phone system professional: proper UK business numbers, auto attendant, call recording, and reliable support. The cheapest proper business phone system in the UK starts from £6+VAT per user per month, which is about 20p per day.

What broadband speed do I need for a VoIP phone system?

Each simultaneous call uses about 100Kbps of bandwidth. Even basic broadband handles this easily. The more important factor is broadband stability rather than raw speed. A consistent 10Mbps connection with low latency works perfectly for a small office with 5 to 10 users on calls simultaneously. If your broadband regularly drops out, consider upgrading before switching to VoIP.

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

Yes. Number porting is a standard, regulated process in the UK. Your existing geographic numbers (01, 02, 03) and non geographic numbers (0800 etc) can be ported to any VoIP provider. The process takes 5 to 10 working days and there should be no downtime for your number. Check whether your new provider charges a porting fee, as this varies from free to £50 per number.

How long does it take to set up a VoIP phone system?

If you are going softphone only, you can be up and running within an hour. Sign up, download the app, configure your number, and you are making calls. If you are ordering desk phones, allow 3 to 5 working days for delivery. The phones arrive pre configured and just need plugging in. Number porting (keeping your existing number) takes an additional 5 to 10 working days but you can use a temporary number in the meantime.

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Get Your Free Phone System Quote

Finding the cheapest business phone system should not mean hours of research and sales calls. That is what we are here for. As an OFCOM regulated comparison service, we get quotes from every major UK VoIP provider and find you the best deal for your specific needs.

Get a free, no obligation VoIP quote in under 2 minutes. Tell us how many users you need, what features matter, and we will come back with the best options at the best prices. We have been doing this since 2008, and we are rated 4.3/5 on Trustpilot from over 1,000 reviews.

No pressure, no commitment. Just the clearest view of what is available and what it will cost.