In this paper, we discuss a von Mises plasticity model with nonlinear isotropic hardening assuming small strains in a plane strain example of internally pressurised thick-walled cylinder subjected to different loading conditions. The elastic deformation is modelled using the Navier-Cauchy equation. In regions where the von Mises stress exceeds the yield stress, corrections are made locally through a return mapping algorithm. We present a novel method that uses a Radial Basis Function-Finite Difference (RBF-FD) approach with Picard iteration to solve the system of nonlinear equations arising from plastic deformation. This technique eliminates the need to stabilise the divergence operator and avoids special positioning of the boundary nodes, while preserving the elegance of the meshless discretisation and avoiding the introduction of new parameters that would require tuning. The results of the proposed method are compared with analytical and Finite Element Method (FEM) solutions. The results show that the proposed method achieves comparable accuracy to FEM while offering significant advantages in the treatment of complex geometries without the need for conventional meshing or special treatment of boundary nodes or differential operators.