What is a unique feature of taxation for sole traders?

Sole traders indeed have different taxation requirements compared to limited companies, which makes this the correct answer. Unlike limited companies, which are subject to corporation tax on their profits, sole traders pay income tax on their profits, which are reported as personal income on their self-assessment tax return.

Additionally, sole traders may also be liable for National Insurance contributions based on their profits, while limited companies follow a separate tax framework for both the business and its owners. This difference in taxation structure reflects the distinct legal and operational status of sole traders versus limited companies, thus highlighting the unique features of taxation that apply specifically to sole traders.

The other choices do not accurately describe the taxation of sole traders. For instance, being taxed at a corporate rate is applicable to limited companies, not sole traders. Likewise, claiming no taxes at all is not true, as sole traders are responsible for their income tax. While sole traders can claim various business expenses as deductions, they do not have unlimited tax deductions; certain limits and regulations apply.