Stonemasons and Monument Makers — CIS and Tax Guide

An Ancient Trade with Modern Tax Rules

Stonemasonry is one of the oldest trades in existence — and yet the tax rules governing it are firmly rooted in the 21st century. Whether you're carving headstones, restoring medieval church stonework, building dry stone walls, or creating bespoke architectural features, the fundamentals of self-employed tax and the Construction Industry Scheme (CIS) apply to your work.

The combination of CIS registration, specialist equipment costs, heavy material expenses, and the unique nature of heritage work makes stonemasonry one of the more interesting trades from a tax perspective. Let's chip away at the detail.

CIS — The Construction Industry Scheme

If you do any work that falls within the scope of the construction industry — and most stonemasonry does — you'll need to understand CIS. This is the scheme under which contractors deduct tax at source from payments to subcontractors.

How CIS Works

When you work for a contractor (a building company, a construction firm, a developer), they must:

1. Verify your CIS registration with HMRC
2. Deduct tax from your payments
3. Pay you the net amount

The deduction rates are:

• 20% if you're registered with HMRC for CIS
• 30% if you're not registered

That 10% difference is significant. On a £5,000 job, being registered saves you £500 in upfront deductions. Register for CIS immediately if you haven't already.

For a thorough walkthrough of CIS, see our CIS subcontractors guide.

What About Materials?

Here's something crucial for stonemasons: CIS deductions should only apply to the labour element of your invoice, not the materials. If you're supplying stone, mortar, fixings, and other materials, these should be shown separately on your invoice and excluded from the CIS deduction calculation.

For example, if you invoice £8,000 for a job — £5,000 labour and £3,000 materials — the 20% CIS deduction should be calculated on the £5,000 labour portion only, giving a deduction of £1,000 (not £1,600 if calculated on the full amount).

Always itemise your invoices with a clear split between labour and materials. This is not only a legal requirement but protects your cash flow.

Gross Payment Status

If your turnover exceeds £30,000 per year (or the company equivalent), you may be eligible for Gross Payment Status. This means contractors pay you in full without CIS deductions. You'll still need to file Self Assessment and pay your tax, but your cash flow benefits enormously.

To qualify, you need:

• To be registered with CIS
• A turnover above the threshold
• Up-to-date tax returns and payments
• A track record of tax compliance

CIS Deductions and Your Tax Return

CIS deductions are not an additional tax — they're advance payments towards your annual tax bill. When you file your Self Assessment, the CIS deductions you've suffered during the year are offset against your tax liability.

If your CIS deductions exceed your actual tax bill (which happens when your expenses are high), you'll receive a refund from HMRC. Many stonemasons are owed refunds and don't realise it.

Expenses — What You Can Claim

Stonemasonry involves serious costs. Here's what's deductible:

Specialist Tools and Equipment

• Chisels, mallets, and hand carving tools
• Pneumatic hammers and air compressors
• Angle grinders, disc cutters, and diamond blades
• Letter cutting tools
• Polishing equipment
• Measuring and marking tools (squares, levels, templates)
• Lifting equipment (chain blocks, A-frames, gantry cranes)
• Banker mason's bench and turning gear
• Stone saws (bridge saws, wire saws)

Major equipment like stone saws (£5,000-£20,000+) can be claimed in full through the Annual Investment Allowance.

Workshop Expenses

Most stonemasons need a yard or workshop:

• Workshop or yard rent
• Business rates
• Electricity (significant for power tools and lighting)
• Water supply
• Heating (important for certain stone treatments)
• Insurance
• Security
• Waste disposal (stone waste can be costly to remove)

Dust Extraction and Health

This deserves special mention. Silica dust from cutting stone is a serious health hazard, and investing in proper dust extraction is both essential and fully deductible:

• Dust extraction systems
• Wet cutting equipment
• Respiratory protective equipment (RPE)
• Face fit testing
• Health surveillance costs
• Hearing protection (for noisy cutting equipment)

Vehicle Costs

Transporting stone and equipment requires serious vehicles:

• Van or truck running costs
• Fuel (stone is heavy — fuel consumption for loaded vehicles is significant)
• Insurance (including goods in transit)
• MOT and servicing
• Road tax
• Vehicle hire (for particularly heavy loads)
• Crane hire (for installation of large pieces)

If you use your personal vehicle, you can claim mileage at 45p per mile for the first 10,000 miles and 25p thereafter — see our mileage guide. But if you run a dedicated work van or truck, claiming actual costs usually works out better.

Materials

• Stone blocks, slabs, and pieces
• Mortar, lime, and cement
• Fixings and cramps
• Lead and resin
• Letters and fixings for memorial work
• Gilding materials
• Sealants and treatments

PPE and Safety Equipment

• Safety boots (steel-toe, with ankle support)
• Protective gloves
• Safety goggles and face shields
• Hard hats
• Ear defenders
• Dust masks and respirators
• Knee pads
• High-visibility clothing

All of this is fully deductible as necessary protective clothing.

Training and Qualifications

• CSCS card costs and renewal
• NVQ assessments
• Heritage skills courses (conservation techniques, lime mortar, etc.)
• Manufacturer training (specific stone treatment products)
• First aid training
• Working at heights certification
• Abrasive wheels training

Heritage and Church Work

A significant portion of stonemasonry work involves heritage buildings — churches, cathedrals, listed buildings, and historic monuments. This type of work has some unique considerations:

VAT on listed building work: Repairs and alterations to listed buildings used to benefit from zero-rated or reduced-rate VAT, but the rules have changed over the years. Currently, most work on listed buildings is standard rated at 20%. However, there are still some reliefs available for approved alterations to listed places of worship — the Listed Places of Worship Grant Scheme can reimburse the VAT.

Specialist skills premium: Heritage work often commands higher rates due to the specialist skills required. If you're trained in traditional lime mortar work, letter cutting, or conservation techniques, make sure your pricing reflects this expertise.

Long project timescales: Cathedral restoration projects can span years. For tax purposes, you'll normally declare income in the year you invoice for it (cash basis) or the year you earn it (accruals basis). If a project spans multiple tax years, the income is spread accordingly.

Tax Rates — 2025/26

Your self-employed profits are taxed at:

• Personal allowance: £12,570 (no tax)
• Basic rate: 20% on £12,571-£50,270
• Higher rate: 40% on £50,271-£125,140
• Additional rate: 45% above £125,140

National Insurance:

• Class 2: £3.45/week
• Class 4: 6% on profits between £12,570 and £50,270, then 2% above

Example — With CIS Refund

Annual income: £48,000 CIS deductions suffered: £7,200 (20% of £36,000 labour element) Expenses: £16,000

Taxable profit: £32,000

• Income tax: 20% on £19,430 = £3,886
• Class 2 NI: £179
• Class 4 NI: 6% on £19,430 = £1,166
• Total tax liability: £5,231
• Less CIS already deducted: £7,200
• HMRC owes you: £1,969

This is a common scenario for stonemasons with high material costs. Don't leave money sitting with HMRC — file your return promptly and claim your refund.

Record Keeping for Stonemasons

Keep meticulous records of:

• Every invoice issued (with clear labour/materials split)
• CIS payment and deduction statements from contractors
• All expense receipts
• Vehicle mileage log or actual cost records
• Stock of materials at year end (for stock valuation)
• Equipment purchases and disposals

Accounted makes this straightforward. Penny, our AI bookkeeper, understands CIS deductions and can track your labour and materials split automatically. When refund time comes around, everything's already in order.

Common Mistakes

1. Not registering for CIS — paying 30% instead of 20% is throwing money away
2. Not splitting labour and materials on invoices — overpaying CIS deductions as a result
3. Missing CIS refund claims — check every year whether you're owed money back
4. Not keeping dust extraction receipts — these are significant costs and fully deductible
5. Forgetting stock valuation — stone in your yard at year end is stock, not an expense (until used)

Build Your Finances on Solid Foundations

Your craftsmanship will endure for centuries. Your financial records should be built with the same care — just with considerably less effort. Accounted helps stonemasons keep their books in order without the heavy lifting. Give it a try and see how much simpler tax can be.

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Related Reading

• CIS Subcontractors — Deductions Guide
• Mileage Allowance Explained
• Protective Clothing and Uniforms — What Can You Claim?
• Classic Car Restorers — Hobby vs Business for Tax
• Computer Repair Technicians — Self-Employed Tax Guide
• Tax Guide for Osteopaths and Chiropractors

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