VoIP vs SIP trunk: which one does your business actually need?
When to choose a hosted VoIP service, when a SIP trunk is right, and the tax / accounting differences for UK companies.
The two terms are often used interchangeably. They are not the same. Picking the wrong one wastes money and locks you into the wrong contract for the 2027 PSTN switch-off.
Hosted VoIP, in one sentence
Hosted VoIP is a managed service: the provider runs the phone system in their cloud, you bring users and numbers. Examples: Silux Call, Yay, bOnline, Voipfone.
SIP trunk, in one sentence
A SIP trunk is a wholesale connection that points your own on-premise phone system (a 3CX server, an Asterisk box, a Mitel PBX) at the public phone network. You manage the PBX yourself, you just buy the dial-tone.
Which one for which business?
- You have 1-50 users and no phone-system specialist on staff — hosted VoIP. Don't even consider a SIP trunk.
- You already own a PBX you like (typical of larger SMBs with a long-running Mitel or Avaya install) — a SIP trunk lets you keep it and replace just the BT line.
- You're a software vendor that needs to embed calling — neither; you want a CPaaS like Twilio or our open-API tier.
- You're an MSP — Silux Call's white-label hosted VoIP is what your customers want. SIP trunks are what *you* might buy wholesale to terminate on a 3CX you host for them.
Cost comparison (UK, real numbers)
| Item | Hosted VoIP (Silux Plus) | SIP trunk + on-prem PBX |
|---|---|---|
| Per user / month | £11.95 all-in | £3-7 (trunk) + £4-12 (PBX licence amortised) |
| Hardware up-front | £0 | £800-£5,000 for the PBX server + handsets |
| IT engineer time | 0 hours/month | 2-8 hours/month for upgrades, security patches, capacity |
| 5-year total (10 users) | ~£7,170 | ~£11,500–£18,000 |
UK tax / accounting
Hosted VoIP is an operating expense; you deduct the £11.95/user/month against profit immediately. SIP-trunk-plus-PBX gear is normally capitalised over 5 years for HMRC purposes; talk to your accountant before signing.
The 2027 switch-off angle
Both work after the PSTN switch-off — both speak SIP over the open internet. The only thing that stops working in 2027 is the analogue copper line under WLR2; whatever you put on top of it (hosted VoIP or SIP trunk) survives.
Our take
Choose hosted VoIP unless you have a specific reason not to. Silux Call's Pro tier (£17.95) is feature-equivalent to a £40k 3CX-plus-SBC build at the 10-user scale, with no maintenance burden.
Other guides
- UK PSTN switch-off 2027: what every small business must doguide
- How to port your UK phone number to VoIP (PAC and STAC explained)guide
- Silux Call vs bOnlinealternative
- Silux Call vs Yay.comalternative
- Silux Call for Estate agentsindustry
- Silux Call for Legal practicesindustry
- PSTN switch-off countdown 2027: what every UK SMB must do in the next 12 monthsblog
- Pre-ring AI scam shield: why your UK business phone should drop scam calls before it ringsblog
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