It happens, I bought a Christmas present for my wife from somewhere in Hackney, and the first delivery tracking notification was somewhere far more far east than E5. I didn't get stiffed for duty on that one.
As mentioned, my wife got bit for £100+ on her piece of 'Dutch artwork. That was import duty, VAT, and a dash of sweet for Royal Mail. Principally I'm not opposed to paying the VAT, but she already paid it on the original purchase.