UK Traffic Law
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What are you hoping to achieve?
Yes, he could. That is the basis of our system. People make reports and their statement is evidence. Obviously unless he says he saw you hit the car or there is some other compelling evidence like comparable damage the chances of being charged for anything arising are not high. You do need to sort out insurance for other reasons but they may pick up on the fact that you weren't insured at the time. Can I claridy anything for you?
Do you deny hitting him?
Why is he lying? People do sometimes but why in this case?
Well, if you deny that anything took place then that is the account you will have to offer. People do lie sometimes. If he is saying that he saw you do it though then it is not really possible to run this on the basis of mistake. Either it happened or it did not.