Bluetooth module(HC05) works with Arduino Uno but not with breadboard (ATmega328) I am currently working on a project that requires communication between an android phone(galaxy s4) and an ATmega328 microprocessor. To connect these devices wirelessly I'm using an HC05 bluetooth module and to understand the connection I'm using pre-built arduino codes(turn LEDs on and off) and an android app called blueterm.

This connection is established and able to transmit data when connected to the Arduino uno, but as soon as this chip is removed and connected to a standalone breadboard the connection fails. The standalone breadboard works fine and has been tested with many other projects and I have attached the breadboard connection below. The HC05 when connected to the breadboard changes the blinking pattern to notify the user it is connected but the serial connection is never made. Any help would be greatly appreciated, if any other information is needed feel free to ask.
If the LED is blinking, the device is waiting to pair with another Bluetooth transceiver (your phone). Once paired, the LED will stay lit. The factory-set pairing code is usually 1234. I can't tell from the photograph how the HC-05 Rx &amp; Tx are wired to your ATmega328, but note that it must be cross-connected; that is Rx -> Tx and Tx -> Rx.