We present considerations of microbunching studies in the CLARA (Compact Linear Accelerator for Research and Applications), the proposed UK FEL test facility under construction at Daresbury Laboratory. CLARA, a high-brightness electron linac, presents an opportunity to study the microbunching instability. A number of theoretical models have been proposed concerning the causes of this instability, and it has also been observed at various FEL facilities. We have applied these models to the CLARA FEL, and propose a suitable laser heater design which will provide flexibility in terms of the range of modes of operation for CLARA. We also propose a method for inducing and controlling the microbunching instability via pulse stacking of the photoinjector laser.