Everyone says just add a Calling Plan and you are sorted. But is it actually that simple?
Let’s be honest. If you already use Microsoft Teams every day, adding phone calls feels like the obvious next step. Everything in one app. Clean setup. No extra handsets if you do not want them. That is the vibe.
But when you look at pricing, licences and limits, things change. Fast.
With the PSTN switch off in the UK happening before January 2027, businesses need a solid cloud solution. Not something that looks good at first but gets expensive as you grow. The last thing you want in 2026 is rushing to replace old lines while everyone else has already moved. That is why understanding your business VoIP options really matters.
At Cleartwo, we help UK SMEs connect hosted VoIP and cloud PBX systems directly into Teams. We manage the setup, number porting and support. You get Teams voice integration, strong features at SME pricing and a 99.99% uptime SLA. No stress. Let’s break it down.
What Are Microsoft Teams Calling Plans In The UK
Microsoft Teams Calling Plans are Microsoft’s way of turning Teams into a phone system. You add a Teams Phone licence, then add a Calling Plan. This connects you to the public phone network.
There are three main options in the UK.
- Domestic Calling Plan
- International Calling Plan
- Pay As You Go
It sounds simple. And it can be. But you must buy the Teams Phone licence first, then add the plan on top. That stacking can catch people out. If you want a deeper look at how it works, check out our full Microsoft Teams phone system UK guide.
Microsoft Teams Calling Plans UK Pricing Explained
Let’s talk numbers. This is where most businesses start to pause.
Based on current UK pricing, you are roughly looking at:
- Teams Phone licence around £7.70 per user per month
- Domestic Calling Plan around £12 per user per month
- International plan around £26 per user per month
- Pay As You Go with usage charges on top
If you choose Domestic, that is about £20 per user per month before extra charges. For a 25 person team, that is around £500 each month. Over three years, that is £18,000 just on voice licences. And that is before add ons.
Minute bundles are shared, but only across the same plans. If some users have Domestic and others have International, they are separate. Extra minutes are charged per minute. You may also need Communication Credits for some calls.
When you compare that with a typical VoIP phone system cost in the UK, you can see why many SMEs start looking at other options.
Microsoft Teams Calling Plans UK Limitations
This is where things get real.
Licence Stacking Gets Expensive
You cannot just buy calling on its own. You need Microsoft 365, then Teams Phone, then the Calling Plan. Costs grow as you add users. For scaling SMEs, that adds pressure to the monthly budget.
Number Porting To Microsoft
With Calling Plans, your numbers sit with Microsoft. If you decide to move later, the process can be more complex. With SIP trunking or Direct Routing, you often keep more control.
Limited Advanced Call Features
You get basic call queues and auto attendants. But advanced routing, live wallboards and deep reporting are more limited than a full hosted VoIP platform.
For sectors like finance or recruitment, compliant call recording for UK businesses is essential. Teams alone may not cover every need.
CRM Integration Gaps
Some integrations exist. But if your sales team works inside a cloud CRM and needs click to dial, auto logging and clear reports, a dedicated VoIP system with CRM phone integration often does more.
If your competitors are automating tasks and improving workflows, you do not want your phone system slowing you down. That is giving 2010 energy. Let’s level up.
Why UK Businesses Are Rethinking Microsoft Teams Calling Plans UK
The main driver is the PSTN switch off.
By January 2027, ISDN and analogue lines will be gone. Every business needs a digital solution. The UK VoIP market is growing fast, and most SMEs have already moved or are planning to.
If you still use legacy lines, read what the ISDN switch off means for your business. Do not leave it too late.
Teams Calling Plans are one option. But they are not the only one. And for many SMEs, they are not the most cost effective long term choice.
Better Alternative To Microsoft Teams Calling Plans UK
Here we go. This is where it gets interesting.
Teams Direct Routing connects Microsoft Teams to a third party VoIP provider using SIP trunking. In simple terms, Teams stays as your interface. Your voice service runs on a proper cloud PBX in the background. That is the upgrade.
This means you can keep your numbers, lower per user costs and unlock advanced features.
- Keep your numbers
- Lower monthly costs
- Advanced call routing
- Built in CRM integration
- Compliance call recording
- Flexible minute bundles
- Full UK support
With a managed UCaaS solution, you also get reporting, call analytics, voicemail to email, mobile apps and full Teams voice integration. But without stacking Microsoft calling charges on top. That shift can seriously improve your cost structure. No cap.
Why CallSwitch One Is A Smart Move
This is where we suggest looking at CallSwitch One.
Cleartwo are official CallSwitch One resellers. You get the platform plus proper UK based managed support from Cleartwo. It is not just about features. It is about knowing someone has your back.
CallSwitch One delivers enterprise level hosted VoIP and cloud PBX features. Think call recording, advanced queues, CRM integration, analytics and Microsoft Teams voice. But at SME friendly pricing.
- Fast support response
- Clear and competitive pricing
- Fully managed setup
- Smooth number porting
- Ongoing optimisation
If you want to compare options, read our VoIP providers UK comparison guide.
Microsoft Teams Calling Plans UK Vs Direct Routing
Quick reality check.
Teams Calling Plans
- Licence stacking required
- Microsoft controls numbers
- Limited advanced reporting
- Extra charges for overages
- Basic call recording
Direct Routing With Managed VoIP
- Flexible SIP trunking
- You retain number control
- Advanced analytics
- Custom call flows
- Full CRM integration
For growing SMEs investing in digital tools and IT support, a flexible business telephony setup matters. Your phone system should connect with your full tech stack, not sit on its own. Simple as that.
If you are exploring wider digital change or reading our plain English guide to VoIP, you will see how hosted VoIP fits into the bigger picture.
Final Thoughts On Microsoft Teams Calling Plans UK
Microsoft Teams Calling Plans are easy to set up. For small teams with simple needs, they can work well.
But if you are scaling, need compliant recording, deep CRM links or want to avoid rising licence costs, a managed alternative is worth serious thought.
Cleartwo design and manage hosted VoIP, cloud PBX and Teams Direct Routing solutions built for UK SMEs. Fully managed setup. UK based support. Enterprise features at SME pricing. 99.99% uptime SLA.
If you want to upgrade your business telephony without the stress, you have got this. Let’s go.
Frequently Asked Questions
How Much Do Microsoft Teams Calling Plans Cost In The UK
You need a Teams Phone licence plus a Calling Plan. Most UK businesses pay around £20 per user per month for domestic calling. International minutes and overages cost extra.
Will Teams Calling Plans Work After The PSTN Switch Off
Yes. They are cloud based and compliant with the PSTN switch off. However, businesses should plan early to avoid disruption before January 2027.
What Is Teams Direct Routing
Teams Direct Routing connects Microsoft Teams to a third party VoIP provider using SIP trunking. This lets you use Teams as the front end while calls run through a hosted VoIP or cloud PBX system.
Can I Integrate VoIP With Microsoft Teams Without Calling Plans
Yes. With Direct Routing or a managed UCaaS solution, you can connect VoIP to Teams without buying Microsoft Calling Plans. This often gives more flexibility and better value.
How Much Can UK SMEs Save By Switching To Hosted VoIP
Many UK SMEs save up to 60 percent compared to legacy ISDN or traditional systems. Savings depend on team size and call volume, but fixed per user pricing makes costs easier to manage.
