A Client Reported Me to the Police for Fraud Over Building Invoices. What do I do?

Can My Client Report Me to the Police Over Disputed Building Invoices?

Yes. Anyone can report suspected criminal conduct to the police, even where the allegation arises from a commercial disagreement. However, making a report does not mean the police must investigate or that criminal charges will follow.

The police decide whether an allegation warrants investigation. Before charges are brought, there must be sufficient evidence, and prosecution must be in the public interest.

The CPS specifically warns prosecutors against allowing criminal law to be used as a debt collection tool or to protect a company’s commercial interests. This is relevant where a building contractor and client disagree over unpaid invoices, the scope of work or additional charges.

For example, a client may allege that you invoiced for work that was never completed, while you maintain that the work reflected changes agreed during the project. The existence of that disagreement does not establish fraud.

However, if police have already arrested you or seized business records, the investigation must be taken seriously. A solicitor can help you respond to the allegation and assess whether it should be treated as a civil dispute.

When Does a Building Invoice Dispute Become Criminal Fraud?

Most disagreements over building invoices are civil matters. Criminal fraud becomes a possibility where there is evidence that a contractor knowingly made a false or misleading representation dishonestly, intending to make a gain or cause a loss.

A representation can be made in writing, verbally or through conduct, including submitting an invoice. The prosecution must establish that the information was false or misleading and that you knew it was, or might have been, inaccurate.

An actual financial gain or loss does not have to occur for the offence to be established.

When a disagreement over price or scope stays civil

An honest disagreement about what was agreed will generally be a contractual dispute. For example, you may believe the client authorised additional tiling or changes to a kitchen extension, while the client later disputes the extra charges.

If you genuinely carried out the work and believed the variation had been agreed, the disagreement does not automatically amount to criminal fraud. The appropriate course may be a civil claim to determine what was agreed and what payment is owed.

When an invoice dispute may become a criminal matter

The position changes where evidence suggests a contractor knowingly submitted false information to obtain payment. For example, invoicing for work that was never carried out, deliberately exaggerating the quantity of materials used or claiming a project was complete when you knew otherwise may support a fraud allegation.

The distinction is between a contractor who honestly believes they are entitled to payment and someone who deliberately makes false claims to obtain money.

The prosecution must prove the required dishonesty rather than simply establish that the client disputes the invoice.

What Does the Prosecution Have to Prove About Dishonesty?

The prosecution must prove that you knowingly made a false or misleading representation, acted dishonestly and intended to make a gain or cause a loss. A disagreement about the amount owed is not enough on its own.

When considering dishonesty, the court examines what you actually knew or believed at the time and whether ordinary, reasonable people would regard your conduct as dishonest in those circumstances.

This distinction matters for builders and contractors because site instructions and variations are not always recorded in formal documents.

For example, if you genuinely believed the client had authorised additional work and that the invoiced amount was owed, that belief is relevant to whether you acted dishonestly. However, an honest belief does not automatically resolve the allegation.

The court may consider the surrounding evidence, including the contract, site records, communications and work completed.

A solicitor can help establish what you understood had been agreed and whether the prosecution’s evidence supports an allegation of deliberate dishonesty.

Can I Be Accused of Fraud for Verbally Agreed Extra Work?

Invoicing for verbally agreed extra work is not automatically fraud. The key question is whether you honestly believed the client had authorised the work and the additional charge.

Verbal agreements can be legally binding, although proving exactly what was agreed may be more difficult than where the terms were recorded in writing. For example, a client may ask you on-site to install an additional downstairs toilet.

You carry out the work and invoice for the labour and materials, but the client later denies agreeing to the variation. That is a disputed factual account. It becomes potentially criminal only if you invoiced for work you knew had never been requested or never carried out.

When you submit an invoice, you are implicitly representing that the work described was done and that the charge is properly owed.

That implied false representation only arises if you knew otherwise. An honest contractor who invoices in good faith for work they genuinely carried out under a verbal agreement is not making a false representation, even if the client disputes it.

The practical difficulty with verbal agreements is evidential rather than legal. They are harder to prove than written ones, which is why the records you already hold become very important at this stage.

How Can I Prove My Client Approved Changes to the Building Work?

Messages, photographs, site records and witness accounts can help establish that your client agreed to additional work or knew it was being carried out.

Records created during the project are particularly useful because they show what was happening before the dispute arose.

Text messages and WhatsApp exchanges where the client discusses the work, asks for additional tasks or acknowledges changes are often the most useful evidence in building disputes. Emails that refer to scope, cost or variations carry similar weight.

Photographs taken on-site showing the state of the work at different stages, or showing a change in layout from the original plan, can confirm that additional work was actually done. Signed quotations or variation orders are the strongest written evidence, though many smaller jobs do not use them. Where a client has made partial payments against invoices, those payments often imply acceptance of at least some of the charges.

Witness evidence from other tradespeople, subcontractors or labourers present during conversations about variations can also be valuable. Site diaries or day-work sheets, even informal ones, support your account of what was done and when.

Preserve everything you have now. Do not delete messages, including ones that seem unhelpful or ambiguous. Once a police report has been made, you should not contact the client directly to discuss the dispute, request confirmation of anything or seek to resolve the matter informally.

Any such contact could complicate your position or be misrepresented.

What Happens If the Police Arrest Me or Seize My Job Files?

If police believe the invoice allegations may involve criminal fraud, they can investigate, conduct interviews and seize relevant records where their legal powers allow it. An arrest or seizure does not mean you have been found guilty.

Investigators may examine invoices, quotations, payment records, contracts and communications to establish what work was agreed and completed.

They may also question you about additional charges, verbal variations and discrepancies between your records and the client’s account.

Following an interview, you may be released while enquiries continue, placed on pre-charge bail where appropriate or charged if the applicable requirements are met.

Can I get copies of the job files the police have seized?

You may be able to obtain copies of seized records or supervised access to them, subject to the needs of the investigation. This can be particularly important if the files contain information required for ongoing projects, outstanding payments or business accounts.

Ask your solicitor to obtain a record of what was seized and consider whether copies or access can be requested. The police may retain material needed for an investigation, but retention is subject to legal requirements.

Do not attempt to recover documents informally or alter related electronic records. Where your business depends on those files, explain the practical difficulties to your solicitor so that appropriate requests can be made.

Can a Solicitor Help Show the Police This Is a Civil Dispute?

Yes. A fraud defence solicitor can make representations to the police or CPS before charges are brought, explaining why the dispute concerns contractual payment rather than criminal dishonesty.

Pre-charge representations set out the defence position in writing before any charge is made. In a building invoice dispute, that typically means explaining the contractual background, identifying the evidence that supports your account of what was agreed, and drawing the police or CPS’s attention to the civil and criminal distinction, including the guidance warning against treating a disputed false representation claim as a debt recovery tool.

The aim is to give decision-makers the full picture before they decide whether to charge, rather than waiting until after a charge has been made.

These representations do not guarantee that the police will close the case. They can be effective, particularly where the dispute genuinely rests on a factual disagreement about what was agreed rather than on any identifiable false representation.

A solicitor with experience in fraud allegations can assess the evidence against you, identify where the prosecution case is weak, and present your account in a way that addresses the relevant legal tests directly.

Interview advice is a separate and equally important function. Whether the interview is voluntary or under arrest, your solicitor can advise you on whether to answer questions, what the risk of no-comment answers is in your specific circumstances, and how to present your account clearly without saying things that could later be used against you.

Could the Fraud Allegation Affect My Building Business and Reputation?

Yes. An arrest or fraud investigation may affect commercial relationships even before any criminal charge is brought. Clients, suppliers and subcontractors may become concerned if they hear about the allegation.

For example, a contractor whose arrest becomes known locally may face questions from existing clients or difficulty securing further work.

Unpaid invoices can also create financial pressure, particularly where materials, wages and subcontractor payments remain outstanding. However, an allegation is not proof of fraud, and an arrest does not automatically establish criminal wrongdoing. If clients or suppliers raise concerns, keep communications factual and avoid discussing confidential details of the investigation.

A solicitor can advise you on how to respond to allegations that may damage your reputation without making statements that could affect the criminal case. Where unpaid invoices remain outstanding, the contractual dispute may also require separate advice.

The criminal investigation and any civil payment claim need to be considered together so that action taken in one matter does not create unnecessary problems in the other.

What Should I Do If I Have Been Arrested for Invoice Fraud?

Obtain legal advice promptly, preserve all relevant records and establish exactly which invoices or variations are disputed. If you have already been interviewed, your solicitor can review what happened and advise on the next stage.

Gather the original contract, quotations, variation records, invoices, messages, photographs and payment information. Identify which charges the client disputes and whether they relate to the original agreement or additional work requested during the project.

Make a factual record of verbal instructions you remember receiving, including approximate dates and anyone present.

Do not delete communications, alter records or create documents intended to appear as though they were made during the work. If police have seized relevant files, ask your solicitor about obtaining copies or access.

Avoid arguing with the client about the allegation or discussing the investigation publicly. If unpaid invoices are affecting your cash flow, seek advice before starting recovery proceedings or agreeing to a settlement. You may need to manage the civil and criminal aspects together.

How Can a Fraud Defence Solicitor Help Me?

A fraud defence solicitor can examine the allegations against you, assess the available evidence and advise whether the dispute involves suspected criminal dishonesty or a disagreement over building work and payments.

For building contractors, this may mean reviewing contracts, quotations, invoices, agreed variations and site records to establish what work was authorised and completed.

If the dispute involves verbal agreements or changes made during the project, your solicitor can consider messages, photographs and witness accounts that support your version of events. They can also assess whether there are grounds to make representations to the prosecution before a charging decision.

If the police have seized your job records, your solicitor can advise whether you can request access to them or obtain copies. They can also help you address related concerns, including unpaid invoices, ongoing contracts and any civil claim brought by the client.

Ashmans Solicitors’ Fraud and Financial Crime solicitor advises individuals facing allegations involving disputed payments and fraud by false representation.

Speak to a Fraud Defence Solicitor

If a client has accused you of fraud over disputed building invoices, our solicitors can help you understand the allegations, respond to police enquiries and consider your options before charges are brought.

We can also advise on how the investigation may affect your business, particularly where payments remain outstanding or the client is pursuing a separate civil claim.