I'm a bit confused how dividends are taxable.
Assuming I want to take ~£30k dividends ('tax credit' excluded) on which I will use my ~£10k personal allowance. Do I pay any income tax from it (from the rest ~20k)?
Normally there is 20% of basic rate on income above Personal Allowance, however in here I can find that it's 10% (Dividend ordinary rate), then in here that there is 0% on dividend tax rates if I'm on Basic rate (which I am as it is up to £31,785).
So theoretically I don't pay income tax on ~£30k dividends (without counting any other income), but then what's the point of 10% 'tax credit' which is always added on the top of each dividend value?
Can anybody explain that in plain English based on the above scenario (getting £30k dividends with £10k Personal Allowance), how it's exactly taxable if so?