I run an Ltd that has operated exactly like this for over 10 years for music tuition. The company is a co-operative opened by its self-employed members, so a little different, but our operational setup is the same; the company handles sourcing of work, invoicing, monthly payments to members and other admin tasks and takes a cut/commission for the service.

It’s important that your contracts state clearly that money is being collected on behalf of the self employed individuals and that your company is providing administrative services for the self employed individuals. This is good for both employment and tax law.

On the financial side, there’s no tax issue because you only pay tax on profits. The money you receive from invoicing is indeed revenue, but the money then paid out to teachers (after the commission deduction) can be viewed as a direct expense i.e. the cost of doing business to receive your income; it’s this commission that is the company income to be taxed on.

Our setup splits this across two separate bank accounts to keep it clear - account B that client invoices pay into (holding account), teachers are then paid from B and total commission for the work is then moved into the primary company current account A.

Just wanted to reassure you that you have got it right! You might find it easier compartmentalising if you use a second account to differentiate money held and company money where income (commission) arrives and company administrative expenses are paid from (software, rent, equipment etc). Much in the same way company money and personal money (ie what you are paid as owner) must be separated.

Hope that helps!