The answer is simple. How do the LABC know what you have done and when?
If I want to get some where quick I break the speed limit. Although now too old to want to get anywhere quick.
But same with re-wire. Simple answer if you don't want to notify you simply break the law.
We all know people flout the rules all the time. Be it not checking the earth loop impedance or not going through LABC personally not following BS7671:2008 is far more dangerous than not paying the LABC their fee.
So nitty gritty why pay the fee? Answer is simple you want to show a buyer or insurer that it was done correct. On a whole house re-wire it will cost around £200 to get the paper trail required to sell the house. So to show the prospective buyer that the £3000 spent on the re-wire was done A1 it's going to cost £200. Not worth worrying about just pay the fee.
I would agree for the old extra socket then £200 is OTT but for whole re-wire then quite reasonable.
So I agree with holmslaw it's a Stupid thread.
I had a full periodic on every circuit in the house done after my DIY rewire. Wouldnt have done it any other way. Only problems were on circuits i HADNT modified.