Is .htaccess file in right place?

I’m having trouble with Permalinks – only Settings>Permalinks>Custom allows Posts, Categories and Tags to work, but now I can’t navigate pages around the site, for example on Home Page of my site – https://golovegreece.com/ – if I try, in bottom left corner of blog, to go to page 2, an Error 404 page will appear.

I’m working on the theory that its an .htaccess file problem. Using FTP, I’ve located the .htaccess file in html root folder – see screenshot here: https://i1171.photobucket.com/albums/r556/pushkin64/httpaccessfile.jpg
The file says:

BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ – [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>

# END WordPress

Is the .htaccess file in the right place? Should it be somewhere else too? Are its contents correct? Any other ideas what might be causing my Permalinks problem?

Many Thanks