Last updated: March 2026 • Reviewed by Compare The Networks
VoIP vs Virtual Landline: Quick Comparison
These are two different products that solve different problems. Understanding the difference helps you choose the right solution and avoid overpaying.
| Feature | Virtual Landline | VoIP Phone System |
|---|---|---|
| What it is | A phone number that forwards calls to your mobile | A complete phone system over the internet |
| Equipment needed | None (just your mobile) | IP phones, headsets, or app on phone/PC |
| Outbound calls | From your mobile number | From your business number Better |
| Call queues | No | Yes |
| Auto-attendant (IVR) | No | Yes |
| Multiple extensions | No | Yes |
| Call recording | Basic (some providers) | Yes (built-in) |
| Monthly cost | £6-10/number | £8-25/user |
| Best for | Sole traders, freelancers | Offices with 3+ staff |
Virtual Landline Explained
A virtual landline is a geographic phone number (e.g., 020 for London, 0161 for Manchester) that forwards incoming calls to your mobile. That’s essentially all it does.
You get:
- A local landline number for your business cards, website, and marketing
- Calls forwarded to your mobile (or multiple mobiles in sequence)
- Callers see a professional landline number
You don’t get:
- The ability to make outbound calls showing your landline number (your mobile number shows)
- Call queues, auto-attendant, or extensions
- A desk phone or office phone system
Perfect for sole traders who want to look professional without the cost of a full phone system.
VoIP Phone System Explained
A VoIP phone system replaces your entire business phone setup. Calls are made and received over the internet, using desk phones, computer apps, or mobile apps.
You get:
- A full office phone system with extensions for each employee
- Outbound calls showing your business number (not your mobile)
- Call queues, hold music, and auto-attendant (“Press 1 for sales, 2 for support”)
- Call recording, voicemail-to-email, and analytics
- Mobile app so staff can take business calls from anywhere
Not Sure Which You Need?
Tell us about your business and we’ll recommend VoIP, virtual landline, or a combination. Free, impartial advice.
Get Free AdviceCost Comparison
| Scenario | Virtual Landline Cost | VoIP Cost | Best Choice |
|---|---|---|---|
| Sole trader, 1 person | £6-10/mo | £8-15/mo | Virtual Landline Cheaper |
| Small team, 2-3 people | £6-10/mo | £24-45/mo | Depends on needs |
| Office, 5+ people | Not suitable | £40-125/mo | VoIP Better Value |
| Multi-site business | Not suitable | £80-250/mo | VoIP (essential) |
Decision Guide
Choose Virtual Landline If:
- You are a sole trader or freelancer
- You just need a professional number on your business cards
- You are happy receiving calls on your mobile
- You don’t need call queues or extensions
- Budget is under £10/month
Choose VoIP If:
- You have 3+ staff who take business calls
- You need call queues, extensions, or auto-attendant
- You want outbound calls to show your business number
- You need call recording for compliance or training
- You want a scalable system that grows with your business
What is the difference between VoIP and a virtual landline?
A virtual landline is a phone number that forwards calls to your mobile. VoIP is a complete phone system over the internet with extensions, call queues, and outbound calling from your business number. They are different products for different needs.
Which is cheaper, VoIP or virtual landline?
Virtual landline (£6-10/month) is cheaper than VoIP (£8-25/user/month). But VoIP includes much more functionality. For sole traders, virtual landline. For offices with 3+ staff, VoIP is better value per feature.
Do I need VoIP or a virtual landline?
Need just a professional number? Virtual landline. Need call queues, extensions, outbound business number display, or recording? VoIP. Not sure? Contact us for free advice.